It may be bad luck or a wrong decision when you see that you are overburdened with debt. You are not in a position to pay off the debt and lead a financially unstable life. You start feeling the heat due to the continuous harassment of your creditors, who are constantly knocking at your door.
During such instances, you can file for bankruptcy with the court. It is a legal process that specifies that you are no longer in a position to pay off your debt. The court, in return, gives you a second chance to lead a financially stable life by making a deal.
Steps to file for bankruptcy
You can file for bankruptcy on your own or appoint a bankruptcy lawyer who will guide you through the process.
However, you must understand that filing a bankruptcy is no child’s play. You can face complications at times, so you must educate yourself before filing for bankruptcy.
Following are the steps that you need to follow to file for bankruptcy:
Show your Financial Record
When filing for bankruptcy, you must ensure that all your financial records are in proper order.
You have to show a complete list of all your assets together with your income and expenses.
You must also specify the critical areas of your monthly expenditure. It will help the court understand your financial condition and develop a proper decision.
You must get credit counseling within 180 days.
There must be credit counseling for your financial status; else you will not be able to file for bankruptcy. It will give a clear picture of your current financial condition and specify proof that you cannot meet the debts.
However, you must ensure that the counselor is from a U. S court. Then, you can get the services either online or over the phone.
When the entire process is over, you will get a certificate specifying that you are financially incapable of meeting the outstanding due. It is the essential part of the process; else your application will be rejected.
File your petition
It becomes difficult to understand the legal proceedings of bankruptcy. Hence, you should hire a bankruptcy lawyer who will guide you through the entire proceedings, and they will advise you on how to file your bankruptcy petition.
Meet your creditors
Once the court accepts your petition, you can meet your creditors. You must attend the meeting with your creditors as they will ask you about the case and how to meet up with the debt.
Call to Action
If you cannot meet the outstanding debts, you must file for bankruptcy with the court. In addition, you must hire a bankruptcy lawyer to file your bankruptcy with the court.
