Bankruptcy INK

If it is determined that bankruptcy is your best course of action to solve your financial difficulties, the next step is to figure out which Chapter is appropriate for you. Individuals usually file under Chapter 7 or Chapter 13. Chapter 7 is commonly used to wipe out all of your debts immediately allowing a fresh start. However, you must be able to qualify for this Chapter. Chapter 13 is commonly used by those that don’t qualify for Chapter 7 or those seeking to save their home from foreclosure.

Once it is decided which Chapter is appropriate, you will want to gather all of the necessary documents. These will include copies of past tax returns, pay stubs for the previous six months, and bills or statements from all debts owed.

This accumulation can take some time and this is one of the reasons why it is important to see an attorney as soon as possible. If you have trouble finding all of the necessary documents, consult with your attorney for help. For example, if you can’t find past tax returns, most attorney’s have a means of ordering these quickly and cheaply.

Make sure that you have current statements of all your debts, including and most importantly, mortgage statement and copies of any late fees assessed. Therefore, when the mortgage company files their proof of claim, it can easily be determined if this is an accurate claim or needs to be challenged.

Once all of the necessary documents are received by the attorney, he will be able to put together all of the paperwork that needs to filed to commence your bankruptcy case. The next blog will cover what happens once your case is formally filed.