Do-It-Yourself Bankruptcy Book
Filing for Chapter 7 bankruptcy can be very challenging for anyone who is not a bankruptcy attorney. It can also be a very costly process. For that reason, some debtors try to file for bankruptcy on their own. If you are a debtor wishing to file for Chapter 7 bankruptcy on your own, you need to follow certain steps outlined in the federal bankruptcy code. You should also be aware that if you make mistakes or omit information, your case can be dismissed, leaving you right back where you started.
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Instructions
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Do-It-Yourself Bankruptcy Book
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1
Attend credit counseling with a government-approved agency in the 180 days before filing your bankruptcy petition. You will receive a certificate of credit counseling that you should file with the bankruptcy court.
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2
Take the means test. Compare your family's income with the median income for a family of the same size in your state. You can find this information on the U.S. Census Bureau website. If your family income is less than the state median, you can file for Chapter 7 and skip to Step 4.
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3
Calculate monthly disposable income by deducting allowed monthly expenses from monthly income. If your monthly disposable income is less than $100, you can file for Chapter 7. If your monthly disposable income is more than $100, and that amount would not pay at least 25 percent of your debts over the next 60 months, you can file for Chapter 7. Otherwise, you may need to file for Chapter 13 bankruptcy and pay your debts for the next three to five years.
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4
File your Chapter 7 petition with a $299 fee and schedules listing income, expenditures, assets, liabilities, executory contracts, unexpired leases and a statement of financial affairs. A trustee will be appointed to your case. The trustee will gather your property as property of the bankruptcy estate and will return all exempt property to you.
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5
Claim exempt property. The federal government and each state have a list of exemptions that residents can claim. Some states allow debtors to choose between state and federal exemptions. Consult your state laws to find out which property you can keep.
The trustee will sell all property of the bankruptcy estate and use the proceeds to pay a portion of your creditors. After your creditors have been paid, you should receive a discharge of your debts.
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Tips & Warnings
Double-check your calculations.
Mistakes can cause your case to be dismissed.
References
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