How to File for Chapter 7 Bankruptcy Broomfield CO

Steps

1. Determine if bankruptcy is the best option for you. Bankruptcy should be considered your last option, and should only be used if you have exhausted all other possibilities.
2. Consult a bankruptcy attorney in your area. A bankruptcy attorney can help you determine whether chapter 7 is the best option for you, and can guide you through the entire process.
3. Complete mandatory credit counseling. This will cost $40.00 to $50.00 but the fee may be waived in certain circumstances. If your case is filed without the credit counseling it will be dismissed before you obtain your discharge.
4. File a petition. As the debtor you must file a petition with the bankruptcy court serving the area where you live (or where you own a business or have most of your assets). Once the petition is filed, most legal actions are stayed", and most of the people you owe (the creditors) will be unable to start or continue lawsuits, garnish wages, or contact you demanding payment.
5. Complete other necessary paperwork. Along with the petition, you will also file a schedule of assets and liabilities, current income and expenditures, all debts to be included in the bankruptcy, executory contracts and unexpired leases, and a schedule of exempt assets, and, under the revised bankruptcy code, a means test, which is used by the trustee to determine possible abuse of the bankruptcy laws. The bankruptcy forms can be purchased at a stationary store, or your bankruptcy attorney can help you prepare the forms. Some forms are available through the bankruptcy courts; however, be advised that bankrupcty court clerks cannot offer any legal advise on your financial situation.
6. Pay the fees. Subject to change, the courts will charge $299 in fees. The filing fee must be paid in full when filing your initial petition; however, some bankruptcy courts allow the filing fee to be paid in installments, or even waive the fee entirely under severe financial burdens.
7. Provide your bankruptcy trustee with copy of pay advices (pay check stubs) and your most recent tax return at least seven days before your creditors meeting.
8. Attend the meeting of creditors. About 20 to 40 days after the petition is signed, a meeting of creditors is held. You must attend the meeting, and the people you owe will be able to ask you any questions regarding your financial affairs and property. This rarely happens, especially if most of your debt is non-secured; credit card companies will not send representatives to surround you at a meeting.
9. Under the revised bankruptcy laws, after filing your initial Chapter 7 bankrupcty petition, you must also complete a debtor financial management educational course administered through approved credit counseling agencies. The average fee is around $50, and under certain financial circumstances this fee may be waived.
10. Get yourself back on track! At the conclusion of the chapter 7 bankruptcy process, you are discharged. You are no longer liable for discharged debts, and creditors cannot take any action against you. You are now ready to start re-building your credit!

Tips

• If you choose to represent yourself in filing a Chapter 7 bankruptcy (this is legally referred to as a "Pro Se" debtor), it is vital that you familiarize yourself with the procedures and rules of the local Bankruptcy Court District, as well as bankruptcy rules and exemptions for your state.
• It may be advisable to speak with an experienced bankruptcy lawyer to protect your assets. Each state has different exemptions, and an attorney can use those exemptions to protect your different assets. An attorney can also help guide you through the bankruptcy process and help you avoid the pitfalls. An attorney can also help provide guidance to help rebuild your credit after bankruptcy.

Warnings

• If your Chapter 13 bankruptcy case is dismissed voluntarily and the automatic stay was modified previously by a creditor, you must wait 6 months before filing Chapter 13 again.
• It is possible that the trustee will determine that your case doesn't qualify for a Chapter 7 bankruptcy; the trustee can recommend the Chapter 7 case be converted to a Chapter 13 bankruptcy, which means you will have to make payments to the trustee to repay debt.

Sources and Citations

• For an overview of current bankruptcy laws and procedures, many free downloadable bankruptcy forms, and a listing of federally-approved consumer credit counseling agencies that provide both pre-filing counseling as well as post-filing debtor education programs, visit the [U.S. Bankruptcy Court's website].
• For more information on personal bankruptcy, visit www.bankruptcy-america.com
• In the Dallas/Fort Worth area, review the steps involved in a [Chapter 7 bankruptcy filing].
• For specific information about filing for bankruptcy in Chicago Illinois, contact Leeders & Associates, Ltd. for a free consultation at http://www.leederslaw.com

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