Filing for Bankruptcy
By David Haynes, About.com Guide
If you are considering filing for bankruptcy, you are likely overwhelmed and confused with the options and paths available to you. Understanding your options is critical to result after bankruptcy which conforms with your financial goals. For example, it makes little sense to file for bankruptcy if you cannot exempt any of your property. Like other areas of the law, knowledge is king (or queen) in bankruptcy.
Bankruptcy Chapters
The most commonly used bankruptcy chapters include 7, 11, and 13, with 7 and 13 being the most common for individuals. Learning which bankruptcy chapter is most appropriate for you, based upon its requirements and outcomes is one of the first steps in filing for bankruptcy.
Bankruptcy Documents
At its heart, bankruptcy, like any legal system, requires a great deal of paperwork. This unfortunate, but necessary requirement of filing for bankruptcy can cause non-lawyers to improperly fill out various bankruptcy documents, causing a variety of problems for debtors. It is crucial to understand each bankruptcy document and how each is to be completed.
Bankruptcy Process and System
Although an understanding of bankruptcy documents and your options in terms of bankruptcy chapters make up the first steps in filing for bankruptcy, it is important to learn about the system in which you are dipping your financial feet.