Filing Bankruptcy

What is bankruptcy filing?

Bankruptcy filing is the process of seeking relief from debt by filing a petition with the bankruptcy court. When an individual or business files for bankruptcy, the court assigns a trustee to oversee the case and review the petitioner's financial information. Depending on the type of bankruptcy filed, certain assets may be sold to pay off creditors and the individual or business may be discharged from certain debts. 

The goal of bankruptcy is to give the individual or business a fresh financial start by eliminating or reorganizing their debt. It is a legal process and there are different types of bankruptcy that may be filed, such as Chapter 7, Chapter 11, and Chapter 13. Each type has different requirements and can affect the petitioner's assets, income, and debts in different ways. It is important to note that filing for bankruptcy has long term effects on credit history and can be seen as a negative mark on credit report for up to 10 years.

bankruptcy filing process 

The bankruptcy filing process in the United States involves several steps. First, an individual or business must determine if they are eligible to file for bankruptcy by reviewing their financial situation and the different types of bankruptcy that are available.

Next, they must complete a credit counseling course with an approved agency. After that, they must gather all of their financial information and documents, including a list of assets and liabilities, income and expenses, and any recent tax returns.

The individual or business must then choose which type of bankruptcy they will file for, such as Chapter 7 or Chapter 13. They must also pay a filing fee, which can vary depending on the type of bankruptcy and the individual's income.

Once the paperwork is complete, it must be filed with the appropriate bankruptcy court. The court will then appoint a trustee to oversee the case and review the individual's or business's financial information.

After the filing, there will be a meeting of creditors where the individual or business will have to answer questions about their finances and their ability to repay their debts. If the bankruptcy is approved, the court will issue a discharge of the individual's or business's debts.

It is important to note that the bankruptcy process can be complex and time-consuming, and it is recommended that individuals or businesses seek the advice of an attorney who specializes in bankruptcy law before filing.