money sectionmoney sectionIf you are filing for bankruptcy and your paperwork turns up a "presumption of no abuse," you should be happy. This means is that according to what you filed in your bankruptcy petition, the courts will presume that you are not abusing the bankruptcy system, and that your case should proceed as you wish. If your numbers don't qualify for bankruptcy, then your paperwork will tell you that "the presumption arises" that you are abusing the bankruptcy system.
A debtor can seek bankruptcy relief on different types of debts. The most common are secured and unsecured debts. In addition, a debtor -- particularly a commercial or business debtor -- can have contingent debts, also known as contingent liabilities.
Making the decision to file for bankruptcy is hard. Bankruptcy remains on your credit report for many years and can seriously hurt your ability to get credit for some time. On the other hand, if you're seriously in debt and don't have the means to satisfy it, bankruptcy will give you a chance to wipe the slate clean and start again. Depending on what type of bankruptcy you qualify for, you can either get your debts waived or establish an affordable repayment plan to get you back on your feet.
Filing Chapter 7 Bankruptcy is not something to be taken lightly. It's a complex legal process that requires a solid understanding of bankruptcy law and procedure. Most bankruptcy filers do not know enough about the process to successfully handle it on their own, so they hire a bankruptcy attorney who completes the paperwork and files it with the court system for them. While this is a more expensive route, it is the best way to acquire and file your bankruptcy paperwork.
In a Chapter 7 bankruptcy, a debtor's assets are liquidated in order to pay off her debts. To prepare to file bankruptcy, you will need to prepare detailed paperwork that outlines your financial situation. This paperwork will include a Chapter 7 bankruptcy petition, a statement of financial affairs, a monthly budget and a listing of your property and your debts. You can obtain forms and templates for these documents through the bankruptcy court for your state and district.
When completing the paperwork necessary for bankruptcy, it is advisable to consult an attorney and ensure all documents are accurate and complete. This helps prevent problems that may cause delays or dismissal.
Reaching the threshold at which you feel you need to obtain bankruptcy protection is an emotional experience. You may feel defeated and confused about what to do next. The bankruptcy court system is designed to permit you the opportunity to file a bankruptcy case on your own and without the aid of an attorney. Of course, to pursue a case on your own you need to have a basic understanding of how to fill out bankruptcy paperwork.
