Overwhelmed about how to file bankruptcy? If so,       you are not alone. The Bankruptcy AbusePrevention and Consumer Prot...
Understanding BAPCPA requirements of how to file bankruptcyrequires the assistance of a bankruptcy attorney Although there...
There are six bankruptcy chapters including: Chapter 7, 9, 11, 12,13 and 15 Chapters 7 and 13 are established for individu...
Not all debts can be discharged through bankruptcy proceedingsExcluded debts include: delinquent taxes, outstanding child ...
Debtors are required to submit payments to the bankruptcy Trusteewho in turn distributes payments to creditors In order to...
The new bankruptcy laws also require debtors to obtain creditcounseling through an agency approved by the U S Trustee Cred...
Debtors receive a certificate once counseling is satisfactorilycompleted, which must be presented to the bankruptcy judge ...
If debtors encounter an emergency situation which requires them totake out a loan, they must obtain permission from the co...
If debtors are unable to adhere to their payment plan, creditors canpetition the court seeking dismissal of bankruptcy Whe...
gov Visitors can download bankruptcy forms and locate helpfulresources including approved debt education and credit counse...
How to File Bankruptcy
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Overwhelmed-About-How-To-File-Bankruptcy_-If-So,-Y88

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Overwhelmed-About-How-To-File-Bankruptcy_-If-So,-Y88

  1. 1. Overwhelmed about how to file bankruptcy? If so, you are not alone. The Bankruptcy AbusePrevention and Consumer Protection Act (BAPCPA) was enacted by Congress in 2005 to reduce the number of bankruptcies filed by individuals attempting to write-off credit card debt. Instead ofallowing debtors to file Chapter 7, BAPCPA requires all debtors to repay a portion of debts through Chapter 13 payments.How to File Bankruptcy
  2. 2. Understanding BAPCPA requirements of how to file bankruptcyrequires the assistance of a bankruptcy attorney Although there isno law requiring debtors to retain a lawyer, few individuals arecapable of adhering to the stringent criteria of BAPCPA without legalassistance Debtors who attempt to undergo the process alone couldplace themselves at risk for having their bankruptcy petition deniedThe first step of filing for bankruptcy protection involves determiningwhich bankruptcy chapter best suits the debtor
  3. 3. There are six bankruptcy chapters including: Chapter 7, 9, 11, 12,13 and 15 Chapters 7 and 13 are established for individual debtorswhile the remaining four chapters are set aside for business ownersand corporate entities Chapter 7 is also known as liquidationbankruptcy Debtors must liquidate assets to repay creditors
  4. 4. Not all debts can be discharged through bankruptcy proceedingsExcluded debts include: delinquent taxes, outstanding child support,pending lawsuits, How to File Bankruptcy and federal student loansChapter 13 is known as reorganization bankruptcy because debtorsare required to reorganize debts and establish a payment planChapter 13 payments typically extend for two to three years
  5. 5. Debtors are required to submit payments to the bankruptcy Trusteewho in turn distributes payments to creditors In order to comply withBAPCPA regulations, debtors must submit to the means test whichis a financial calculator that compares debtors income to their statesmedian income level When debtors income exceeds medianincome they are required to file Chapter 13 If debtors income fallsbelow median income they might be allowed to file for protectionunder Chapter 7
  6. 6. The new bankruptcy laws also require debtors to obtain creditcounseling through an agency approved by the U S Trustee Creditcounseling must take place no more than six months prior tosubmitting the bankruptcy petition
  7. 7. Debtors receive a certificate once counseling is satisfactorilycompleted, which must be presented to the bankruptcy judge Mostpeople that file for must file Chapter 13 and develop a repaymentplan It is important to note that debtors are prohibited from incurringnew debts during the repayment period
  8. 8. If debtors encounter an emergency situation which requires them totake out a loan, they must obtain permission from the courtAdditionally, a large percentage of disposable income must be usedto repay outstanding debts Chapter 13 payments can place seriousfinancial restrictions on debtors and often cause debtors to fail out ofbankruptcy
  9. 9. If debtors are unable to adhere to their payment plan, creditors canpetition the court seeking dismissal of bankruptcy When bankruptcypetitions are dismissed, debtors lose protection from the court andcreditors can commence with collection actions Debtors can locateinformation via the Department of Justice website at usdoj
  10. 10. gov Visitors can download bankruptcy forms and locate helpfulresources including approved debt education and credit counselingagencies
  11. 11. How to File Bankruptcy

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