Individuals may file Chapter 7 or Chapter 13 bankruptcy, depending on the specifics of their situation. Municipalities—cities, towns, villages, taxing districts, municipal utilities, and school districts may file under Chapter 9 to reorganize. Businesses may file bankruptcy under Chapter 7 to liquidate or Chapter 11 to reorganize. Chapter 12 provides debt relief to family farmers and fishermen. Bankruptcy filings that involve parties from more than one country are filed under Chapter Finding a Lawyer, Including Free Legal Services If you need help finding a bankruptcy lawyer, the resources below may help.
Feeling crushed by debt is one of the most stressful situations possible, but there are options. If you find yourself saddled with more debt than you can reasonably pay off in a timely manner, you can always file for bankruptcy.
But sometimes bankruptcy is the best way to get a new start so you can then stay on top of your finances, and with hard work, you can begin to turn your financial life around. To help you better understand how bankruptcy works, we reached out to financial lawyers who specialize in guiding their clients through the process. If a person or a business can no longer meet their outstanding debts, they can begin the legal proceeding known as bankruptcy.
When this happens, the debtor files a petition to a federal bankruptcy court in which their assets are measured and evaluated.
From there, depending on what type of bankruptcy they file for, their assets may or may not be used to repay part of their debt. Filing for bankruptcy is a big step, but sometimes it is the right one. Camron Hoorfar, J. However, you may have to surrender your assets like cash, property, etc. It stays on your credit reports for ten years. The first step to filing for bankruptcy is to find the right lawyer. While you can try to go through the process on your own, it would be a bit like representing yourself in court; i.
According to Hoorfar, a lawyer can help you in the following ways. Attorney Andrea Wimmer. Andrea practiced exclusively as a bankruptcy attorney in consumer Chapter 7 and Chapter 13 cases for more than 10 years before joining Upsolve, first as a contributing writer and editor and ultimately joining the team as Managing Editor.
While in private practice, Andrea handled Take our screener to see if Upsolve is right for you. Upsolve is a c 3 nonprofit that started in Our mission is to help low-income families who cannot afford lawyers file bankruptcy for free, using an online web app. Spun out of Harvard Law School, our team includes lawyers, engineers, and judges. We have world-class funders that include the U. To learn more, read why we started Upsolve in , our reviews from past users, and our press coverage from places like the New York Times and Wall Street Journal.
Free Articles. Bankruptcy Tool. Filing Guide. In a Nutshell Chapter 7 bankruptcy is a powerful debt relief tool for American consumers and businesses alike. Collect Your Documents Your first step is to collect all your financial documents so you understand the current state of your finances. In addition to your credit report, you will need the following documents: Tax returns for the past 2 years Pay stubs or other proof of your income for the last 6 months Recent bank account statements Recent retirement account or brokerage account statements Valuations or appraisals of any real estate you own Copies of vehicle registration Any other documents relating to your assets , debts, or income.
Take Credit Counseling Every person who files for bankruptcy has to take a credit counseling course in the 6 months before their bankruptcy petition is filed with the court. Complete the Bankruptcy Forms The bankruptcy forms include at least 23 separate forms , totaling roughly 70 pages. Print Your Bankruptcy Forms Once you have prepared your bankruptcy forms, you will need to print them out for the court. You will need: The petition forms including any required local forms Your credit counseling certificate Your paycheck stubs If needed, your application for a fee waiver or installment plan Most bankruptcy courts require just one signed original of the petition , but some courts require additional copies.
Go to Court to File Your Bankruptcy Forms Once you enter the doors of your local courthouse , you will be greeted by security guards, who will ask you to pass through a metal detector. Mail Documents to Your Trustee The Chapter 7 trustee is an official appointed by the court to oversee your case and liquidate, or sell, nonexempt property for the benefit of your creditors. Take Bankruptcy Course 2 After filing your bankruptcy forms, you will need to complete a Debtor Education Course from an approved credit counseling agency.
Attend Your Meeting Your meeting, or meeting of creditors , will take place about a month after your bankruptcy case is filed. American Bankruptcy Institute. Bankruptcy by the Numbers - Chapter 7 Asset Cases. ABI Journal. Written By:. Attorney Andrea Wimmer Twitter LinkedIn Andrea practiced exclusively as a bankruptcy attorney in consumer Chapter 7 and Chapter 13 cases for more than 10 years before joining Upsolve, first as a contributing writer and editor and ultimately joining the team as Managing Editor.
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Reuters - A unit of offshore driller Seadrill Ltd on Tuesday filed a fast-tracked reorganization plan in Houston bankruptcy court, where it expects to seek approval of the proposal on Wednesday. The case comes just a few months after its parent entity emerged from its own bankruptcy proceeding.
That reorganization plan is scheduled to go into effect early this year. A representative for Seadrill Ltd did not immediately respond to a request for comment. It owns SeaMex Ltd, which holds five rigs in Mexico and underwent a restructuring last year after the state-owned petroleum company Pemex , a top customer, failed to pay up.
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