If you had your credit counseling sessions, and you are dead sure you will proceed with filing for bankruptcy, then you need to follow the following tips.
These tips will make sure you have a smooth process and won’t have any issues when you are trying to rebuild your credit again. So, carefully go over these and assure you don’t miss a thing.
1. Change the Bank Account
If you got the debts with your bank, then your account will likely be closed when you go bankrupt. Therefore, it will be a lot better if you open up a new account before filing for that. Most banks have a clause in terms and conditions which states your bank account will be close if you go bankrupt.
There are only a few banks that don’t have this clause. If this is not an option for you, then you better consider using a credit union.They will help you get an account or register one using your family, or friend’s credential.
When you go bankrupt, you have to complete two forms, one isStatement of Affairs, and Second is Debtor’s Bankruptcy Petition. If you qualify for court fee, then you will need to complete application for a fee remission form.
All of these forms along with guidance note are available online. It is imperative that you take three copies of both forms to court.Photocopy the form once you have filled them. The court won’t grant you bankruptcy until you have submitted copies of forms and their copies.
2. Have Your Appointment
You have to visit the local country court to declare bankruptcy. Not every court can declare you bankrupt. Go to the nearest court. If you want, you can call ahead and ask if this is the right court. It will cost you a bit, but you will save a lot of time. Make sure you have enough time to complete your tasks.
Attend the Hearing; you need to make sure you arrive in court before the hearing. You may need to take your forms to the front desk. The court clerk or district judge will check them.You will have a brief moment to speak with the judge.
Don’t be worried; there are side rooms dedicated to these workers. If you are taking someone who is not important to the judge, then it may help you speed up the proceeding.
Majority of courts declare bankrupts and help you get your debts sorted out. It starts your bankruptcy and a more or less, the start of a debt-free future for you. You have the freedom to start over again. Just make sure, you don’t repeat your old mistakes.
3. Educate Yourself
If you need help with bankruptcy, first educate yourself about this matter. Don’t feel shy about sharing your story with others. They might want to learn about the bankruptcy process. You have to use this experience to educate people around you. Doing this will help them avoid bankruptcy or other such issues in the future.
See our in-depth guide on bankruptcy.