Disclaimer: I am not a lawyer. I am
only publishing my interpretation of my situation. You should seek your
own legal representation for your own particular
situation. Do not rely on my
opinions or statements for your own purposes as state
and local law varies as do individual circumstances.
Bankruptcy is a legal
instrument whereby individuals or organizations declare their
complete or partial inability to pay their debts. In such
situations, the individual(s) or organization will file
bankruptcy declarations. The related debts are then handled in
various ways by the bankruptcy courts. Typically, an
individual(s) or organization files their own bankruptcy
statements. This is termed a voluntary bankruptcy. Occasionally,
creditors file a bankruptcy petition in order to force the
debtor into bankruptcy and collect at least a portion of their
debts. Forcing a debtor into bankruptcy allows the bankruptcy
courts to manage the liquidation of the debtor's assets and
distribute the available proceeds to the various creditors.
Voluntary bankruptcies are by far more common.
While a debtor may file
bankruptcy without legal representation, debtors should still
seriously consider consulting with an attorney or lawyer even if
the debtor intends to file all necessary bankruptcy paperwork
themselves.
For any debtor
considering filing bankruptcy, there are several things to
consider. Bankruptcy involves liquidation of the debtor's assets
and then distributing the proceeds from the sale of those assets
to settle the debtor's outstanding debts. Very few assets are
exempt. Debtors should not assume that bankruptcy will protect
their home or their vehicle. Tax refunds are considered assets
that must be distributed to debtors. Several types of debt are
not dischargeable by bankruptcy such as student loans. Filing
bankruptcy will not eliminate such debts. |
Several Valuable Links Published by the U.S. Bankruptcy
Courts
(All open in a new browser
window)
Bankruptcy Forms -
General
Bankruptcy Definitions -
General
Bankruptcy Definition Details: |
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Bankruptcy Filing Fees (none are posted at less than $200.00)
Bankruptcy Court Locations
Pro Se: Individuals are apparently
allowed to file for bankruptcy without an attorney. This is
referred to as Pro Se. Even if you are going to use an attorney
to file bankruptcy for you, the information provided on the U.S.
Court web site for Pro Se filings is very informative (http://www.uscourts.gov/bankruptcycourts/prose.html).
Reading the Pro Se material is very educational and may help you
to understand all of the steps your lawyer or attorney is
required by law to complete on your behalf.
The following links are posted by the Legal Information
Institute at Cornell University Law School:
United States Bankruptcy Code
Federal Rules of Bankruptcy Procedure
In addition to U.S. Bankruptcy Court postings, local courts may
also have their own local legal requirements for bankruptcy.
Please review local bankruptcy court web sites for those
requirements.
Related Blog Entries
Filing Chapter 13 Bankruptcy
Liquidating Assets Before Bankruptcy
Seek
Legal Counsel,
Same as Get a
Lawyer
Before Bankruptcy, Before You Even Miss a Mortgage Payment
Should I Use Credit Cards for Everyday Expenses?
No Mortgage Payments for Over Six Months
From Mortgage Payments to Rent Checks
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Not sure whether bankruptcy is the right
option for you? A
local bankruptcy attorney can answer your questions and explain
the bankruptcy process to you.
Schedule your free, no-obligation call right now with the
form below!
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