Guide to Online Bankruptcy Filing: Essential Tips
Learn the essential steps to file for bankruptcy online, including understanding different chapters, completing necessary forms, and seeking legal advice if needed. This guide provides beginner-friendly tips, emphasizing the importance of credit counseling, the Means Test, and proper documentation. Whether you're filing for Chapter 7 or Chapter 13, understanding these procedures can streamline your process and help you achieve financial relief efficiently. Always consult a legal expert to ensure the best course of action for your financial situation.
Guide to Online Bankruptcy Filing: Essential Tips
Understanding the two main types of online bankruptcy—Chapter 7 and Chapter 13—is crucial before initiating your filing process. Chapter 13 involves setting up a repayment plan over 3 to 5 years, while Chapter 7 typically eliminates qualifying debts by liquidating certain assets. Consulting a legal professional is highly recommended to determine the best option for your situation, considering specific clauses and alternatives. Most filings are for Chapter 7, but expert advice ensures choosing the correct path.
To begin filing online, download the official free bankruptcy forms from the US courts' website. Follow these key steps:
Complete the Means Test
This test assesses your eligibility for Chapter 7 by comparing your income with the median income in your state. Qualification is granted if your income is below the median; other factors are evaluated if it exceeds it.
Considering legal complexities, consulting an attorney is advisable before proceeding.
Complete Credit Counseling
You must participate in a government-approved credit counseling course within six months of filing. A certificate of completion will be required in court proceedings.
Fill Out Bankruptcy Documentation
Start with form B101, the voluntary petition, then provide details about your creditors, expenses, and other relevant information through subsequent forms.
File Your Petition
After filing, your case will be scheduled in court. For Chapter 7, a trustee will be appointed to liquidate non-essential assets to satisfy debts.
Attend Financial Management Course
You will need to complete a debt education course within 45 days of meeting with your trustee and creditors, during which in-person meetings may be required.
Is a lawyer necessary for online bankruptcy?
Not always. Some states support full online filing, but others may require legal assistance. If not hiring an attorney, you can choose a bankruptcy petition preparer—a non-attorney professional who can handle your documents for a fee.
