Do it yourself bankruptcy - Can you file bankruptcy yourself?

People might think that it takes a lot to file bankruptcy yourself. Do it yourself bankruptcy is something which a common person may not even think of due to all the legal hassles it entails. Due to the current economic crisis going on in the USA and rest of the world, everyone including all companies are looking for ways to save on their expenditure and spending. This has led to thousands of layoffs in recent months. When people are not earning, they resort to taking loans which they are not able to pay of due to no or low income. Ultimately, they are into so much debt that it is next to impossible for them to pay them off and the only option they have is to file bankruptcy. Other major reason for people to file bankruptcy is cost of health care or medical bills.

After individuals try to find bankruptcy alternatives and see if there is any way they can come out of this situation, there is no other way out but bankruptcy. The next decision they would have to make is whether they need an attorney or counselor to file the bankruptcy on their behalf or do they want to do it yourself.

Many people ask this question. Can you file bankruptcy yourself? Answer is YES, you can. Do it yourself bankruptcy is possible though you have to be very thorough with the procedure. People want to do this themselves because they cannot afford fees of attorney. But the truth is that even if you try to do it yourself bankruptcy, it is not free. You will still need to pay application filing fees which ranges from $200 to $300. Apart from this, there are a few other charges which you will need to pay like for means test, getting copies of your credit reports from credit agencies etc.

So, once you have decided to file bankruptcy yourself, you will need to understand the procedure carefully. Lets go through the steps on how you can file bankruptcy yourself:

First of all, you should start with gathering all the outstanding payments and bills. Most of them would be waived off but not all. There are obligations like child support and student loans which will not be waived off. So, take a note of that.
Secondly, get copies of all the bankruptcy forms which you will need to fill out. If you have internet, you can download them from www.uscourts.gov/bankruptcycourts.html. You can also get them from your local courthouse. Take printout of all forms along with their instructions.
You should know which type of bankruptcy you are going to file. There are generally 2 types – Chapter 7 and Chapter 13. You will be required to take a 'means test' which will decide whether you are actually not in a position to pay any debt. If you fail in this test, you have to file for Chapter 13 where you will be required to repay the debt within 5 – 7 years. If you are not sure which one you should be filling, you need to definitely talk to an attorney. Though, filling the forms can be a complex task, these instructions give step by step instructions for minimum confusion. Make sure that you fill these forms as accurately and truthfully as possible. If there is any discrepancy found on these found, your case will be cancelled and all papers will be returned. Therefore, it is a good idea to double and triple check the forms and their information.
Once you have your papers ready, you should go to the court and file them. You need to face the creditors and justify how you got into this position. You will be asked to go though credit management counseling program. This session is a mandatory session now.

Check out other related hubs about bankruptcy which might be useful.

Do it yourself bankruptcy is certainly possible but you need to be very careful till the time the case is fully done. It is possible to file bankruptcy yourself and save quite a bit of money, because attorneys can be expensive especially when you are already bankrupt.

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