What Do I Do Now?

Are your finances a mess?  It is easy enough to look at the quagmire your financial situation has become and joke about bankruptcy, but bankruptcy is no joke.  If you are facing that option and do not know how to claim bankruptcy, there are many things you will need to learn.  How to claim bankruptcy is a mystery for many; they are not even aware that it is a legal process requiring a lot of time and patience.  If you do not know how to claim bankruptcy, you must take steps to educate yourself.

 

The first step in figuring out how to claim bankruptcy is to recognize that as a legal process, a bankruptcy must be filed in bankruptcy court.  It is possible to handle this legal process on your own, but it is demanding.  You must understand the requirements of the new Bankruptcy Reform Bill, in which the rules for filing are more stringent than ever before.   In addition to knowing how to claim bankruptcy, you must educate yourself on the two main types of personal bankruptcies, Chapter 7 and Chapter 13. Past abuses of the old bankruptcy laws resulted in great losses to banks and other lenders and creditors.  This fact played a large role in shaping the new laws, which make it very difficult to prove eligibility for Chapter 7, in which debts are wiped out.

 

Part of understanding how to claim bankruptcy is being prepared for fulfilling the actual requirements.  The court will appoint a trustee, and you will have 45 days to turn over all the necessary personal records or your case will be dismissed.  Creditors will be notified to stop any actions against you.  Your spending will be necessarily restricted, and your wages may be garnered.  You must also be aware that bankruptcies stay on your credit report for 7 to 10 years, during which time you will find it difficult, if not impossible to get credit, obtain a loan or even rent an apartment.

 

There is more to learning about how to claim bankruptcy than you might think.  Free pre-filing bankruptcy counseling is available, and is in fact mandatory under the new laws.  Become educated.  Perhaps in the process of learning how to claim bankruptcy, you will find an option than prevents your needing to claim bankruptcy.

 

 

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