News How to file bankruptcy

How to file bankruptcy

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The Bankruptcy law of 2005 had wide ramifications. This revision after 1978 was the first wherein the Government laid down various procedures for bankruptcy. The two significant chapters of this act are chapter 7 and chapter 13. The basic steps to in how to file a bankruptcy under this act are alike and do not vary. The act lays down some stipulations that are mandatory. To start with a person wishing to declare himself bankrupt needs to consult an attorney to understand the full ramifications of what he is planning to do. He must be made aware of what he is getting into and also what are his legal rights. However in case you are knowledgeable then this conference with an attorney can be dispensed with and you can go ahead and file a bankruptcy yourself. The second step is to complete all documents which are to be attached along with your plea for Bankruptcy to the concerned court. These documents could be voluminous and run into tens of pages. To obviate any legal lapse consultation with an attorney will be a help. The documents once completed need to be vetted for correctness. Once their veracity is established the person filing for bankruptcy must approach the notified United States District Court, bankruptcy division in the place you are ordinarily resident. The documents are filed along with a filing fee which is deposited in the state treasury. This fee is approximately $200 but could vary up or down. The filing fee can be waived by the court in certain circumstances if a proper waiver is filed. This can be done with the approval of the court. The next step is for the court to accept your plea of bankruptcy. Once your plea is accepted the court will advise your creditors about it. The creditors may then meet you and even question you if required. In case they have any objections the same must be filed as well. Once the meeting with the creditors is over the court can accept your plea of bankruptcy. However do note that in all this your documentation must be perfect as the courts are very strict about them. The next step is for the court who will appoint a trustee. This trustee is attached to the debtor and oversees all the assets of the debtor as well as their disposal and sale. The trustee is a friend of the court and protects the rights of the creditors. He must insure fairness in his dealings for all concerned.

How to file bankruptcy
General Contributor
Janice is a writer from Chicago, IL. She created the "simple living as told by me" newsletter with more than 12,000 subscribers about Living Better and is a founder of Seekyt.

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