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File Your Own Bankruptcy with Personal Bankruptcy Forms
Do you currently find yourself so behind on your bills and financial obligations that you’ll never be able to catch up? Have you considered filing for personal bankruptcy but don’t quite know where to start? Making the decision to file for bankruptcy is not an easy thing to do. In fact, it can be downright scary. Perhaps that is why the majority of people who file for personal bankruptcy hire an attorney to assist them in the process. The irony of this tactic, though, is that attorneys may often charge up to $5,000 for their services—money that you probably don’t have or you wouldn’t be in this mess. Fortunately, thanks to the power of the Internet, filing your own bankruptcy petition is now easier than ever. To help get you started, in this article we will briefly discuss the two options you have once you decide to file, and outline some of the documents you will need to complete the personal bankruptcy forms.
Personal Bankruptcy Explained
There are essentially two main types of personal bankruptcy, Chapter 13 Bankruptcy and Chapter 7 Bankruptcy, each named after the chapter in which they appear in the federal Bankruptcy Code. Both of these options can help individuals get their creditors off their back, but they are structured much differently.
In a Chapter 13 bankruptcy, petitioners agree to pay back some or all of the debt they owe, in exchange for having all of their personal property protected. This type of bankruptcy, which is often called a “reorganization bankruptcy,” allows the petitioner to create a payment plan through which he/she can pay off creditors in no more than 5 years. This can be a great option for those people with a lot of real property they need to protect, but in order to qualify when filing under this chapter they must show the court they are financially able to meet the obligations of the repayment plan, otherwise the trustee who hears the case may reject the petition.
In a Chapter 7 bankruptcy, petitioners are excused of some or all of their debt, but they may be required to sell certain personal property items to pay-off creditors. This may sound scary if you own a home or an automobile, but in most cases, due to an exemption provision in Chapter 7 of the Bankruptcy Code, most people will still be able to keep their house and cars. Because some personal property may have to be sold under this code, a Chapter 7 bankruptcy is often referred to as a “liquidation bankruptcy.” To qualify for this type of bankruptcy, petitioners must show that their income is insufficient to meet the qualifications of filing under the Chapter 13 code.
Filling Out Personal Bankruptcy Forms: What You Will Need
There are many personal bankruptcy forms required. You will need to fill out paperwork listing your income and monthly obligations, along with the total amount of debt you owe, secured and unsecured, listed according to the creditors to whom you owe the money. Some of the documents you will need for this process include:
• List of all your debts and creditors, including their names and addresses
• All loan and mortgage paperwork
• Credit report
• Tax returns for the last two years
• Car titles
• And more...
Hiring an attorney is not always necessary when filing for bankruptcy protection under the law. Personal bankruptcy forms can be ordered from the federal court for a small fee, and in many cases these forms are also available online at no cost, with instructions that can help you complete them fast and accurately, with no omissions that would jeopardize their acceptance and approval.