How to File Bankruptcy

Albuquerque Bankruptcy

Corporations and partnerships must have an attorney to file a bankruptcy case. Individuals, however, may represent themselves in bankruptcy court. While individuals can file a bankruptcy case without an attorney or “pro se,” it is extremely difficult to do it successfully.

It is very important that a bankruptcy case be filed and handled correctly. The rules are very technical, and a misstep may affect a debtor’s rights. For example, a debtor whose case is dismissed for failure to file a required document, such as a credit counseling certificate, may lose the right to file another case or lose protections in a later case, including the benefit of the automatic stay. Bankruptcy has long-term financial and legal consequences – hiring a competent attorney is strongly recommended.

How to File Bankruptcy

Make sure that there are no other alternatives. A bankruptcy will remain on your credit file for up to ten years. However, if you are considering filing, your credit is probably already in bad shape. Bankruptcy allows for a fresh start. Under the Bankruptcy Abuse Prevention and Consumer Protection Act (“BAPCPA”), individual debtors are generally required to obtain credit counseling from an approved provider within 180 days before filing a case, and to file a statement of compliance and a certificate of credit counseling furnished by the provider. Failure to do so may result in dismissal of the case.

How to File Bankruptcy

The tw0 most common bankruptcy types are the Chapter 7 and Chapter 13 and there is also the chapter 13. Chapter 7 is a straight or liquidation bankruptcy while Chapter 13 bankruptcy is a repayment plan for individuals. It is now more difficult to file a Chapter 7 bankruptcy case because of the means test. Many individuals must file a Chapter 13 bankruptct case because of the means test.

Albuquerque Bankruptcy

How to File Bankruptcy