How to File Bankruptcy With Credit Card Bills
Bankruptcy allows an individual or a business to get a court settlement on a debt load where payments can be made much smaller over a longer period of time, or it can be used to completely wipe out the debt entirely if filing for a Chapter 7 bankruptcy. To file for bankruptcy, the person must obtain all of the information required by a bankruptcy lawyer which includes employment information, all items owned and contact information for all of the creditors to which money is owed.
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Things You'll Need
- List of all personal belongings including automobiles, real estate, itemized list of all clothing items, entertainment items, computers and investments
- Credit report listing all current accounts, including contact information
- List of all bank loans
- Bank statements for all open bank accounts for the past 3 years OR income tax filing documents for the past 3 years
Instructions
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Create a list of all items currently owned and write it all down in a notebook in a section labeled "Assets." In this list, record the number of all clothing items, televisions, stereo equipment, video game equipment, computers and accessories and other small items. List automobiles with the year, make, model, VIN number (found on vehicle registration) and current book value for each. Also list real-estate, boats, aircraft, recreational vehicles and anything else of value. Also list all investments and bank accounts, writing down the amount of money in each.
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Create a second list in the notebook labeled "Liabilities." In this section, write down the names, addresses, phone numbers, account numbers and the amounts owed for each account. This list is for all debts owed, including bank loans and credit card debts. The information for this section can be obtained through credit card billing statements, bank statements and credit reports from any of the three major credit reporting bureau.
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Gather together as many bank statements, annual tax return filings, paycheck stubs and loan agreements for the past 3 years and store them in a large file folder.
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Set an appointment with a bankruptcy lawyer for assistance in what type of bankruptcy chapter your situation warrants. The attorney will provide a legal document to be filled out, called a bankruptcy schedule.
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Fill out the bankruptcy schedule and include all of the information present in the gathered documents from the lists created in the notebook. Fill out the schedule in full, listing every item owned and every debt owed.
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Submit the bankruptcy schedule and copies of all supporting documents to the lawyer, who will then file the paperwork with the local bankruptcy court.
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Attend all court hearings when directed to do so by the court and the lawyer until the bankruptcy case has been completed, also known as a bankruptcy discharge. It is upon a court discharge that all debts have either been eliminated (Chapter 7), or restructured for payment (Chapter 13) in a way that benefits you.
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Tips & Warnings
Never miss a single court appearance when ordered to be there. Even one missed court appointment can be cause for your case to be dropped entirely.
Never omit any debt or item owned when filling out the bankruptcy schedule forms. One forgotten item can get you into serious legal trouble. If an item or an account isn't listed, it can be considered a "willful omission" by the court which can get the bankruptcy case dropped, along with fines and possibly jail time for such omissions. Every asset and liability must be presented through the best of your ability.
References
Resources
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