What is the First Step in Filing for Bankruptcy?
If you have struggled with debt for too long, it is time for a fresh start. Wages have remained stagnant, and prices are constantly rising for pretty much everything, so now is the perfect time to consider bankruptcy.
Bankruptcy allows you to recognize your debts with a convenient payment plan or wipe them out altogether, whichever is better for your finances and goals. Many people are scared of the process, though, and have concerns. Yes, your credit will be affected for some time, but you no longer have to worry about paying your bills, so it could be the right choice for your situation.
Ready to get started? Bankruptcy starts with filing a petition with the bankruptcy court. Here’s a look at this process in more detail.
Gathering Documents
Filing a petition means filling out bankruptcy forms and showing proof of assets and debts. You will need to gather various documents such as:
- Tax returns for the past two years
- Pay stubs or other proof of your income for the last six months
- Recent bank account statements
- Any retirement account or brokerage account statements
- Appraisals of any real estate (home, property, land) you own
- Copies of vehicle registration
Complete the Bankruptcy Forms
There are more than 20 required forms for bankruptcy, and some forms are several pages long. Expect your total bankruptcy petition to be 70 pages or longer.
The bankruptcy forms ask you about everything you make and spend, as well as the assets you own and the debt you owe. This will help the trustee and judge understand your financial circumstances. You’ll also include information about your case, such as the chapter of bankruptcy you’re filing and whether you’re filing on your own or with a lawyer.
Hiring a lawyer may seem costly, but they can ensure your case goes smoothly. They can fill out all the paperwork for you and guide you through all the steps in the process, reducing anxiety.
Take a Required Course
After you file your bankruptcy forms, your case will not proceed until you complete a Financial Management Course, also known as a Debtor Education Course) from an approved credit counseling agency.
The course can be completed online and takes about two hours. It teaches you how to make smart financial decisions so you do not have to file for bankruptcy again in the future. You will learn how to prepare a budget and avoid debt. Once you finish the course, you will need to file your certificate of completion with the court.
Contact Us Today
Bankruptcy can seem like a stressful and emotional process, but if you are struggling with debt, the process makes sense. It allows you a fresh start.
It all starts with filing the petition. Get the help you need from South Florida bankruptcy attorney Brian K. McMahon, P.A. We will assist you with every step of the process and give you the tools and resources to move forward. Schedule a consultation today by filling out the online form or calling (561) 658-1789. We serve the West Palm Beach, Boca Raton, Port St. Lucie, and South Florida areas.