I Want to File for Consumer Bankruptcy: Now What?

When you have taken a close look at your finances and have considered your options to handle debt, you may have come to the conclusion that you want to move forward with a consumer bankruptcy filing. Yet once you have decided to file for bankruptcy, what are the next steps? The consumer bankruptcy process is lengthy and complicated, and it is important to have an Oak Park consumer bankruptcy attorney who can assist you from the beginning. In the meantime, the following are some of the key steps you will need to undertake or start planning for as part of your consumer bankruptcy case.

Determine Your Eligibility for Consumer Bankruptcy

Before you take any other steps in the consumer bankruptcy process, it will be critical to determine your eligibility for consumer bankruptcy under the U.S. Bankruptcy Code. There are several different types of bankruptcy that are available to individuals, but there are really two primary types of bankruptcy that individuals file on a regular basis — Chapter 7 bankruptcy and Chapter 13 bankruptcy. These two types of bankruptcy have different requirements from one another, and it is unlikely that a person would be eligible for both types of bankruptcy.

Eligibility for Chapter 7 bankruptcy usually requires an individual debtor to pass the “means test,” which is a way of showing that you have such limited assets and income that a liquidation bankruptcy makes sense and would not be abusive. Much differently, Chapter 13 bankruptcy requires an individual debtor to show that they earn a regular wage and will be likely to make regular payments for three to five years on a repayment plan for this type of reorganization bankruptcy. If you appear to qualify for Chapter 13 bankruptcy based on your employment and income, you will need to ensure that your debts are not too high. If the amount of your debts disqualifies you from Chapter 13 bankruptcy, you can likely still file for Chapter 11 bankruptcy.

Take a Pre-Bankruptcy Consumer Credit Counseling Course

For both Chapter 7 and Chapter 13 bankruptcy, you will need to take a credit counseling course before you file your petition for bankruptcy. You can take this course online, and you will receive a certificate of completion that you will need to submit with your bankruptcy petition.

Gather Documents and Materials for Your Bankruptcy Petition

When you submit your bankruptcy petition (in other words, when you file for bankruptcy), you will need to provide a wide variety of information about your finances, including detailed income information and financial disclosures. You will need information from tax documents, wage statements, mortgages, and statements or documents pertaining to any debts that will become part of your bankruptcy case. You should begin gathering this information as soon as possible so that you can readily access it when it is time to file for bankruptcy.

Contact a Bankruptcy Lawyer in Oak Park

Once you feel that you are ready to file for bankruptcy, it is time to seek advice from an Oak Park bankruptcy attorney who can assist you. One of the advocates at our firm can provide you with more information about the consumer bankruptcy process and can help you to determine your eligibility for Chapter 7 or Chapter 13 bankruptcy. Contact the Emerson Law Firm today for more information.


See Related Blog Posts:

How Does Chapter 13 Bankruptcy Work?

Things to Know ABout Consumer Bankruptcy in the New Year

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