How to File for Bankruptcy in DC

Learn how to file for bankruptcy in Washington, D.C.

The decision to declare bankruptcy is a difficult choice for anyone to make, but for many people, it is one of the best if not the only option available. The two main types of bankruptcy are Chapter 7 and Chapter 13. Chapter 7 bankruptcy discharges all of your debts while Chapter 13 sets up a payment plan that you and your creditors agree to. In the District of Columbia, bankruptcy filiings are handled at one location, the E. Barrett Prettyman U.S. Courthouse. The hours of operation are 9am to 4pm Monday through Friday.

Things You'll Need

• $299 for Chapter 7 (as of 2010) $274 for Chapter 13 (as of 2010)

Instructions

1. Determine if a Chapter 7 or Chapter 13 bankruptcy is right for you. Chapter 7 bankruptcy, if approved, would wipe out all debts, while a Chapter 13 sets up a repayment plan. Consult a financial adviser and/or an attorney before making a decision.

2. Submit to a means test if you choose a Chapter 7 filing. Make available a statement of financial affairs. This statement includes a list of creditors and the nature of your debts (type and amount).

3. File the official petition for bankruptcy. Include the filing fee which would be $299 for a Chapter 7 and $274 for a Chapter 13 (both fees as of 2010). An automatic stay is given to you once you file to protect you from any subsequent actions from creditors until the bankruptcy is resolved. Creditors cannot contact you in any way during this time and any wage garnishment must be reversed. A trustee will be assigned to oversee your case.

4. Attend a meeting with the trustee and your creditors. This is called a 341 meeting. Creditors are given 60 days to persuade the court not to cancel your debts. If you win, your debts are discharged.

5. Offer a payment plan to the trustee if you file a Chapter 13. This plan must be executable within 3 to 5 years. Approval of the plan starts monthly payments to creditors according to the agreement.

Tips & Warnings

• According to Lawyers.com, you can keep certain belongings under an exemption scheme: Your home, including co-op or mobile home, to $20,200 Life insurance payments for the person that took care of you Life insurance policy with value up to $10,775 Life insurance contract that has yet to mature Alimony, orchild support Pensions and retirement benefits Household goods up to a total of $10,775 Health aides Jewelry up to $1350 Lost earnings payments Motor vehicle (value up to $3,225) Personal injury payments to $20,200 Tools of trade (valued up to $2,025) Wildcard - $1,075 of any property plus up to $10,125 of any amount of unused homestead exemption

References

• Lawyers.com: Backruptcy in the District of Columbia
• United States Bankruptcy Court in DC