How to Declare Oneself Bankrupt
- 1). Gather your financial information before filing the bankruptcy petition or contacting a lawyer to file the petition for you. Prepare a list of all of your assets, bills, debts, current income and any other expenses that don't fall under bills or debts. Make copies of your bank statements and tax returns.
- 2). Choose the bankruptcy type that works best for your situation. Chapter 7 is suited to low income individuals who do not have the income or assets to pay back creditors. In Chapter 7 bankruptcy, non-exempt assets are liquidated to pay back creditors, but exempt property is left alone. The debt is completely discharged. Chapter 13 restructures the individual's debt so it can be completely repaid within three to five years. Chapter 13 allows the filer to keep certain assets such as a house.
- 3). Complete a credit counseling class from the list provided by the United States Trustee Program. This program must be completed six months before filing bankruptcy.
- 4). Contact a lawyer to file your bankruptcy petition or file the petition yourself in the bankruptcy court in your local jurisdiction. The bankruptcy forms are available online at the United States Court website. The cost to file is $245 and an additional $15 in trustee charges for Chapter 7. For Chapter 13, the fee is $235 for filing and $39 in administrative fees.
- 5). Attend the scheduled bankruptcy hearings. The hearings start approximately 30 to 40 days after filing your bankruptcy petition. You meet with creditors during these hearings.
- 6). Pay your debt according to the bankruptcy agreement if you filed Chapter 13 bankruptcy. As long as the paperwork is filed correctly and you follow the bankruptcy rules, the judge should grant your request for the bankruptcy petition.
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