Global Advice Center

How To Claim Bankruptcy On Your Own

Posted on Jun 24, 2010 03:34:48 AM

If you find yourself in desperate need of financial repair, then you’ve probably at least considered the possibility of filing a bankruptcy claim. While you may view the bankruptcy process as something relatively simple, the fact remains that filing can be one the most stressful and time consuming ordeals you’re ever likely to experience. On top of that are the personal and financial ramifications for filing, which may simply be too overwhelming for some. That being said, some borrowers choose to enter the bankruptcy process alone, without a lawyer or other financial advisor. The following article will serve as an introductory tutorial for how to claim bankruptcy on your own.

Despite what you may have learned on late night television, claiming bankruptcy is a serious matter that requires lots of time and energy on the part of the debtor. Although there are ways to speed up the filing process through the use of an attorney or Bankruptcy Petition Preparer, doing so will cost you money in the short term. How much money? About $1,000 to $2,000 depending on who you hire. While there are certainly some advantages to hiring help, doing so isn’t always possible when money is tight. Because of this, many borrowers decide to take matters into their own hands.

When filing a bankruptcy claim on your own, there are a few steps that you will need to go through. These steps are briefly listed below –

1.    Information Gathering – you will be required to collect detailed information related to your assets, liabilities (debts) and household income. It’s critical that this information is as thorough and accurate as possible, as it will be used to qualify you for bankruptcy and can also be provided to your creditors.
2.    Document Preparation and Filing – this is seen as the most time consuming aspect of the filing process, which is why many people elect to hire someone to help them. You can do it alone, but it will take a significant amount of time.
3.    Credit Counseling – before your application is officially approved, you will need to pay a filing fee and also attend some credit counseling sessions.

It’s important to understand that not everyone qualifies for bankruptcy protection. The information you submit related to your current financial situation will be the determining factor is being approved, so it’s vital that this information is correct.