Managing your finances is not easy. Things can always go wrong, even when it's not your fault. You can lose your job, run into misfortune, or incur medical expenses that you just can't cover. According to Debt.org, the incomes of those filing Chapter 7 and Chapter 13 bankruptcies ranged from $30,000 to the low $40,000s yearly. If you're only making that much yearly, one serious hospital stay in the United States could easily put you in debt. In any case, filing any type of bankruptcy will provide some relief from your debt. Here's how to go about it.

1. Gather Your Documents

This is the very first step. You need to compile all of your financial documents to get a clear and full picture of your finances. Start by requesting a copy of your credit report and keep a copy of that report for your records. The credit bureaus are required to provide you with a free copy of your credit report each year. If you do not keep a copy of that report and need another one, the credit bureaus will charge a fee for it. Some of your debt may not be on it. For instance, you might not see personal loans, medical bills, and tax debts on your credit report. Create a list of your debts that are not on the credit report. You should also gather your tax returns for the past 24 months, bank statements, pay stubs, and copies of vehicle registrations. Additionally, make sure you have any other documents relating to your debts, income, and assets. To ensure you do everything correctly, you may need to find a bankruptcy law office to work with.

2. Sign Up for Credit Counseling

Once you are done compiling your documents, the next step would be to take a credit counseling course. This is a must for anyone who wants to file for bankruptcy. You should find a registered credit counseling agency approved by the Department of Justice. This course will help you figure out whether you really need to file for bankruptcy or find other ways to get back on your feet. These courses only take an hour, and you can even do yours via telephone. Once you finish the course, you will get a certificate of completion. You will be required to submit a copy of this certificate when you file your bankruptcy forms. Please note that the certificate of completion is only good for six months. So, if you do not file a bankruptcy within that six month period, you will be required to take the credit counseling course again.

3. File for Bankruptcy

To file for bankruptcy, you need to first complete the bankruptcy forms. There are about 23 separate forms, totaling about 70 pages. The forms ask you about the money you earn, spend, save, and owe. You also need to include some bankruptcy basics. For instance, you will need to specify the type of bankruptcy you're filing under. Remember to sign your documents before filing and take note that, by signing your name, you are certifying under oath that the information you provided in your bankruptcy forms is true and correct. You should also list whether an attorney is helping you or not. If you are working with a bankruptcy law office, they will complete the forms on your behalf. You will need to submit a fee at this time as well. This amount is usually due when you file your bankruptcy petition with the court.

These are the steps involved when filing for bankruptcy.

4. Meet With a Bankruptcy Trustee

Once your bankruptcy forms are filed, you will be required to meet at least once with a bankruptcy trustee appointed by the court. Your creditors will be invited to attend this meeting as well. The trustee will place you under oath and go over with you the information you provided on the bankruptcy forms. He or she will ask you questions about the things you listed, such as personal belongings, bank accounts, debts, income, and expenses. If creditors attend, they will also have an opportunity to question you. Therefore, it's crucial that you provide true and complete information on your bankruptcy forms before filing. Incomplete or inaccurate information may subject you to further meetings, delays, or other consequences in the processing of your bankruptcy case. For example, undervaluing or overvaluing your assets, such as your home, cars, or jewelry, can result in serious legal complications. If you are unsure or have questions about the forms and the information requested, get in touch with us today at the Law Offices of Rex J. Roldan, PC.