How to Prepare for Chapter 13 Bankruptcy

There are several steps required to prepare for filing Chapter 13 Bankruptcy, with each step very important and often complex. Bankruptcy is a life-changing experience and one not to be taken lightly. This is an opportunity to reorganize your finances and help secure your way of life. Here are some tips to getting yourself prepared for this step.

Instructions

1. Decide whether you will be hiring an attorney or working by yourself. For most, this is a difficult decision. Attorneys cost a great deal of money but are skilled at managing the confusing waters of bankruptcy. However, if you are confident in your ability to represent yourself, you can save hundreds of dollars.

2. File the appropriate paperwork for your state. You can file for bankruptcy online, through your attorney or at the courthouse. Depending on which you choose, fill out every form perfectly, as this can delay the process.

3. Attend bankruptcy counseling and debt management courses if required by your state. Several states will not allow you to even file before your have taken these classes to prove you are serious and dedicated to rehabbing your finances.

4. Organize all personal financial statements to give the courts and your attorney a better idea of your situation. Include all bank statements, mortgages, car payments, school loans, credit card debts and other financial information. Include everything no matter how mundane or embarrassing, as this helps build your financial profile accurately.

5. Follow all instructions given by courts and lawyers. Chances are this is your first trip to bankruptcy court, so listen to the professionals and follow their instructions in order to successfully prepare for your bankruptcy case.