Financial Planning

Are your debts more than your income? Tired of getting calls from collectors at all hours of the day and night? You may want to consider filing bankruptcy. Depending on your situation, you can file bankruptcy without an attorney. You don’t need to be embarrassed. At times our financial situation gets out of control and when there is no way to turn, filing may be a solution for you. After all, that is why bankruptcy exists in the first place. Here is some information that may help you.

You can actually file for bankruptcy on your own, you don’t necessarily need a lawyer. It will take some investigating and some homework as the paperwork can be quite overwhelming. In addition, it needs to be accurate and all information needs to be submitted. First and foremost, you need to be honest with your situation and whether good or bad, you need to reveal everything on the forms. The bankruptcy court is very thorough and if you have a bank account somewhere and you weren’t honest about it, they will find it and if they do, you will be facing fraud charges and could go to jail.

Start by researching online. Sites like Voices in Finance contain a wealth of information. The first part of your investigation should be learning all the requirements to file in the state where you live. Then find out what the average gross income earned is. The reason for obtaining this information will be helpful in determining if you qualify to file.

You will be asked to complete a means test. This test will reveal your income as compared to the average. The difference between your gross income minus all the debt that you owe is called your disposable income. It is best to obtain three credit bureau reports to make sure you include all of the monies you owe. If not disclosed, they may be omitted from liquidation.

With most bankruptcies you must take credit counseling. For around $100 you can take one online in just a few hours. The completion of this class will prove you have satisfied this requirement. Complete all the paperwork as honestly and as completely as you can. In some states you can file online. If submitting online is not available, then you will have to file at the courthouse. There will be a fee when submitting your paperwork. The process takes approximately one month. The next step will be a meeting of all creditors. If there are no objections, the discharge of your filing will occur in approximately six months.

So you can be your own lawyer and file yourself, however there are bankruptcy attorneys that specialize in bankruptcies and can be worth the money that will be left in your savings account if you feel you do not want to take on the challenge. Just shop around as some charge a flat fee and some will charge you per hour. Good luck, and remember you can be your own lawyer.