How to Claim Bankruptcy

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Here are the steps to filling bankruptcy to get started with a bankruptcy:

1.  First there are two types of bankruptcy. Technically there are more than that but there are two that are the best for at least most people. You might want to contact a lawyer before you make the choice to get an opinion. There is chapter 7 which is an immediate liquidation of bankruptcy and then there is chapter 13 which is a repayment plan. It is much more likely that you will be forced however to do a 13.

2.  Then next knowledge is everything starts researching what your options are. Some people decide not get a lawyer. However of course it is recommended that you do get a lawyer however since you are filing bankruptcy you might or might not have the money necessary to hire a lawyer of course. Some people will want a paralegal instead of a lawyer if they choose a large law firm to help them

3.  Then you should meet with the lawyer that you have decided on. The lawyer if he is good should be answering all of your questions. They will help you choose which chapter is best for you.

4.  Next the unfortunate reality is that claiming bankruptcy costs money! Its contradictory isn’t it? The biggest fee is your lawyer. There for you should contact you lawyer and find out how much it will cost. Some lawyers will charge a flat fee while others charge depending on just how much debt is involved. In my opinions always take the former. Some will want money up front while others will take money in installments.

5.  There always places that will allow you to file for free if you don’t have the financial abilities to do so. The average fee will depend on the variable of where do you live? A lawyer unfortunately cannot be your creditor as well in the case of chapter 7. So the attorney’s fee for a chapter 7 will have to pay in full before the case is even filed. If you still owe your attorney money after the chapter 7 case it becomes non-collectable and your lawyer has to waive the unpaid balance or just can’t represent you anymore. Then of course if you are in a chapter 13 cases then of course if agreed with the lawyer the whole of the attorney’s fee can be paid through the chapter 13 plan.

For more information go to How to Claim Bankrupcy.