The Bankruptcy Process

Filing for bankruptcy is a big decision, one that is not agreed upon easily. For many people, the bankruptcy process can be overwhelming and even intimidating.
Filing does not have to be a chore, after all, the process is meant to be helpful not hurtful. The biggest problem that most people face is not knowing what to expect and how the process works. Becoming an informed consumer is the best tool you can have when you are fighting a debt battle.
Filing The Paperwork

The first step in the bankruptcy process is filing the petition. The petition is a detailed list of your financial standing and includes information about your income, assets, debts and bank accounts. The petition is also the most crucial document to any bankruptcy case. If there is any information missing or inaccurate on the petition the case may be dismissed, leaving you without the protection bankruptcy offers.
When filing the petition, it is of utmost importance that you have listed all the details about your current financial standing as well as any assets that may have been sold prior to filing. Since the paperwork required during the initial stages of the process contain numerous details, it is best to seek counsel from a bankruptcy attorney. They can help ensure all of your information is complete and accurate before you file the documents with the court. An attorney can act as your representative and help mediate any communication between you and the court.
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Credit Counseling

Laws require that anyone filing for bankruptcy attend and complete a credit counseling course. The course is also known as a debtor education course and teaches you about budgeting, money management, other debt relief options and how to use credit wisely. The course is usually around 90 minutes long and can be completed in person or online.
When looking for a credit counseling course, it is important that you ensure that the company offering the course is an approved agency. There are many credit counseling companies that operate under false pretenses and may say they offer the course you need, but are not licensed to do so. An attorney can provide you with resources for finding an approved credit counseling agency. You can also find a list of approved agencies on The United States Department Of Trustees website.

Meeting Of Creditors
After the paperwork has been filed a 341 Meeting Of Creditors will be held. This meeting is conducted to provide a forum for anyone involved in the bankruptcy to ask questions or dispute information. Your creditors are allowed to attend the meeting and ask questions about the details listed in the filing. However, creditors do not always attend the meeting, which waives their right to dispute information in the future. The Trustee will be in attendance and it is their job to be a mediator between you and the creditors if any payments or assets are to be given.

Court Decision
Once the Meeting Of Creditors has been completed, any assets have been liquidated and everyone in attendance is in agreement, the bankruptcy court will make its ruling. In a Chapter 7 case, the court may either (a) discharge the debts, relieving you of liability to the debts or (b) dismiss the case, returning your debt liabilities to your responsibility. A case may be dismissed for many reasons including failure to comply with the requirements or fraud. In some cases, you may be able to re-file after your case has been dismissed. In a Chapter 13 case, the court may either (a) discharge the debts after you have satisfied the debt repayment plan or (b) dismiss the case, returning your debt liabilities to your responsibility.