In this article we are going to talk about the subject of how to file for bankruptcy. We do this on the assumption that you have considered all of the alternatives. You probably have more debt than income. You may have lost your job or have had a catastrophic event in your life such as major medical bills.

There are several types of bankruptcy you can file and it really is to your benefit to set up a consultation with a bankruptcy lawyer who deals with this on a daily basis. Most initial consultations are free and you can go over your situation and any alternatives you may have.

A Chapter 7 bankruptcy is a straight liquidation bankruptcy that allows you to pay off almost all of your debts. Any debts from fraud or deliberate injury may not be included in a Chapter 7. Filing a Chapter 7 will prevent creditors from continuing to contact you. You can only file a Chapter 7 bankruptcy every 6 years.

To start a liquidation type bankruptcy you will have to fill out paperwork showing everything you own and owe. This will include listing all of your income and expenses. If you have property you will list what you intend to do with it. These forms must be filed with the United States Bankruptcy Court along with a filing fee.

The bankruptcy court will set a date and time for a creditors meeting. This meeting must be attended by you and your attorney. You will have to go before the trustee and answer questions about your finances under oath. Creditors can appear and ask questions as well. Your case may be dismissed or require more information.

The trustee represents the creditors and he is looking for assets to sell and collect to pass on to them. The trustee will determine whether your case should be discharged or not. He can take non-exempt property and sell it.

Some of your property may be exempt from the claims of your creditors. Household furnishings, radio, working tools, some life insurance, one television, musical instruments, your automobile, some bank accounts, and your home may be exempt, if the value is within certain limits. You and your attorney must take the correct steps to claim the exemption.

If your assets are exempt and your debts can be discharged you will receive a discharge letter in about 90 days after the creditors meeting. Any debts that cannot be discharged will not be included. This could include child support.

If a creditor had an objection you may have to come back and appear to answer to them and defend your reason for including them in your Chapter 7. This usually is not the case.

You are not required by law to have an attorney if you are an individual or sole proprietor, but let's be real here. Bankruptcy laws are complicated. Making sure the correct forms are filed by the correct time is something most people do not know how to do. Because you can only file a Chapter 7 once every 6 years it is important to you financially to do this correctly.

This is especially true of personal property. You need to make it exempt by taking certain steps before you actually file. An attorney is better qualified to advise you on how to do this. Depending on your situation there may be other financial concerns to deal with. Again an attorney will be better ready to handle this for you.

These are a few things you should know about how to file bankruptcy. It may not be your best course of action. By meeting with an attorney for a free consultation and going over your options you will be better informed and able to make the right decision.