If you need to file for bankruptcy, you’re likely hoping to save money on the various fees you’ll need to accrue during the bankruptcy process. You may feel inclined to proceed with the bankruptcy process without the help of a Minneapolis bankruptcy lawyer. Depending on the complexity of your bankruptcy situation, it is possible for you to file without help. It is important to understand that bankruptcy is a process requiring a great deal of effort, time and paperwork. If you’re ready to attempt bankruptcy on your own, here are some tips:
1. Thoroughly understand bankruptcy law in your state. Research different types of bankruptcies and have a general understanding of Minneapolis bankruptcy law. Understand the qualifications for filing and the process regulations to avoid trouble.
2. Fill out the bankruptcy means test. The completion of the bankruptcy means test is required for you to proceed with bankruptcy. The test will also reveal whether you are allowed to file for a Chapter 13 or Chapter 7 bankruptcy. The test involves calculating your household income and comparing it to the household income for a household of the same size in your state—this will require some research. If your monthly income average falls below the household income average in your state, you may file Chapter 7 bankruptcy. If your average is above the comparable median income, calculate and subtract your monthly expenses from that number. The remaining amount is considered ‘disposable income.’ The larger your disposable income, the smaller your chance of being eligible for Chapter 7 bankruptcy.
3. Obtain your credit report. You can request one free copy of your credit report annually. Ensure that this copy includes reports from all three primary credit reporting agencies. Debt not included in your bankruptcy is not eligible for liquidation.
4. Receive credit counseling. Before filing for bankruptcy, you are required to undergo credit counseling and training regarding debt management. This is something you can do online with a few hours and less than $100.00. A certificate of completion is required by the court.
5. Review and submit paperwork. Depending on your location, you can file online or at the courthouse. Either source can provide you with paperwork. Complete the form as instructed, provide information about all debts and assets and most importantly, offer complete honesty. Failure to provide complete and accurate information will lead to a denial of bankruptcy and more fees. You must pay a required filing fee and wait approximately one month. At that time, a creditors meeting will occur. As long as there are no objections, you can expect your case to be finalized in about half a year.
While it is possible to file for bankruptcy on your own, the paperwork can be very intimidating and stressful, especially when added to financial woes. Accuracy is critical. While it may seem difficult to find money to hire a Minneapolis bankruptcy attorney, your attorney can work with you to find the funding and ensure accuracy on all filed paperwork.
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