How to File for Bankruptcy

Note: Want to skip the guide and go straight to the free templates? No problem - scroll to the bottom.
Also note: This is not legal advice.

Introduction

Filing for bankruptcy can be a daunting and complex process, but it can also be an opportunity to start anew. Going down the route of bankruptcy offers debt relief, protection from creditors, opportunity to reorganize finances and a fresh start. To help understand what filing for bankruptcy means and the potential outcomes it can have on an individual or business’s financial future, the Genie AI team has put together some key considerations.

Firstly, filing for bankruptcy does mean that an individual or business will be relieved from their debts; no longer harassed by creditors or collection agencies and free to move forward without being weighed-down by debt. Indeed this could make a major difference to those who are struggling to make ends meet and are unable to pay their bills in full – however one must bear in mind that any assets owned may be used as part of any payment plan.

Moreover, the filing of a petition means that creditors are automatically prohibited from attempting to collect on any debt – meaning they cannot attempt to garnish wages or seize property without permission from the court. For those with a steady income but not sufficient funds at hand, it is possible under Chapter 13 Bankruptcy provisions to create a repayment plan over three-to-five years; allowing them some breathing space whilst enabling them still pay off their debts in turn.

For those considering making use of such provisions however, accessing appropriate expertise is recommended; something that Genie AI is committed to providing through our community template library - which enables users across the globe access high quality legal documents free of charge - plus our step-by-step guidance which encourages people take control of their financial future with confidence. In short we believe everyone should have access quality legal templates so we do not require anyone sign up or own an account with us before accessing them – instead all you need ‘read on’ below find out more about how you too could benefit from using Genie AI today!

Definitions (feel free to skip)

Chapter 7 Bankruptcy: A liquidation bankruptcy that wipes out most of your debts.

Chapter 13 Bankruptcy: A reorganization bankruptcy that allows you to pay off your debts over a period of three to five years.

Chapter 11 Bankruptcy: A type of bankruptcy that is used by corporations and partnerships to reorganize their debts and assets.

Chapter 12 Bankruptcy: A type of bankruptcy that is designed specifically for family farmers and fishermen, allowing them to restructure their debts while continuing to operate their business.

Petition for Bankruptcy: A legal document that must be signed by you and your attorney in order to file for bankruptcy.

Financial Documents: Documents such as income tax returns, bank statements, pay stubs, and credit reports that are necessary to file for bankruptcy.

Creditors Meeting: A meeting that is held after the petition for bankruptcy is submitted, where creditors can ask questions and address any concerns.

Court-Mandated Timeline: The timeline specified by the court that must be followed in order to successfully file for bankruptcy.

Credit Report: A document that provides an overview of an individual or business’s financial history.

Contents

• Research the different types of bankruptcy to determine which one is most suitable for your situation.
• Gather the necessary documents required to file for bankruptcy.
• Contact a qualified bankruptcy attorney to discuss the legal implications of filing for bankruptcy.
• Calculate your current assets and liabilities to determine how much debt you can realistically handle.
• Submit your petition to the appropriate court.
• Attend the creditors meeting and address any questions or concerns.
• Follow the court-mandated timeline for filing for bankruptcy.
• Research potential outcomes of filing for bankruptcy and create a plan for managing your debt.
• Utilize available resources to assist with navigating the bankruptcy process.
• Monitor your credit report regularly to ensure your debts have been discharged.

Get started

Research the different types of bankruptcy to determine which one is most suitable for your situation.

• Research the different types of bankruptcy available, such as Chapter 7 or Chapter 13, to determine which one is most suitable for your situation
• Consider the pros and cons of each type of bankruptcy and decide which one best fits your financial goals
• Consult with a lawyer or financial advisor to get a better understanding of each type of bankruptcy
• When you have chosen the type of bankruptcy that works best for you, you can move on to the next step of filing for bankruptcy.

Gather the necessary documents required to file for bankruptcy.

• Make a list of documents needed, such as bank statements, tax returns, creditors’ names and addresses, and a statement of your current income and expenses.
• Gather all necessary documents, such as pay stubs, bank statements, credit card statements, and tax returns for the past two years.
• Obtain a copy of your credit report from all three major credit reporting agencies.
• You can check this step off when you have gathered all necessary documents and have them ready to submit to the court.

Contact a qualified bankruptcy attorney to discuss the legal implications of filing for bankruptcy.

• Research and contact a qualified bankruptcy attorney to discuss the legal implications of filing for bankruptcy.
• Ask the attorney questions about bankruptcy and learn about the different types available.
• Make sure you understand the consequences of filing for bankruptcy and the potential benefits.
• Schedule an appointment and bring all necessary documents to the meeting.
• You’ll know when you can check this off your list when you have a comprehensive understanding of the legal implications of filing for bankruptcy and have had the chance to talk to a qualified attorney.

Calculate your current assets and liabilities to determine how much debt you can realistically handle.

• Gather all relevant documents, including income statements and debt statements
• Calculate your total assets and total liabilities
• Compare your total assets to total liabilities and determine if you have more assets or more liabilities
• Determine your ability to pay off current debts and if filing for bankruptcy is the best option
• Once you have completed your calculations and determined your current financial situation, you can check this step off your list and move on to submitting your petition to the appropriate court.

Submit your petition to the appropriate court.

• Gather the necessary paperwork, including financial documents and proof of income
• Fill out the required forms for filing a bankruptcy petition with the court
• Pay the applicable filing fee
• Submit the necessary documents to the court
• Receive notification from the court that your bankruptcy petition has been filed
• You’ll know you can check this off your list and move on to the next step when you receive notification from the court that your bankruptcy petition has been filed.

Attend the creditors meeting and address any questions or concerns.

• Attend the meeting with creditors that has been scheduled by the court.
• Bring copies of your bankruptcy documents and any other supporting documents requested.
• Answer any questions or address any concerns that the creditors may have.
• Make sure to stay composed and respectful throughout the process.
• Once all questions or concerns are addressed, the meeting is adjourned, and you can check this off your list and move on to the next step.

Follow the court-mandated timeline for filing for bankruptcy.

• Review the court’s timeline for filing for bankruptcy and ensure you complete all the steps within the specified time frame.
• Identify any deadlines, such as the date to file the petition and the date of the creditors meeting.
• Keep a detailed record of all deadlines, including the date by which you must file all documents.
• When you have completed all of the steps within the set timeframe, you can check this off your list and move on to the next step.

Research potential outcomes of filing for bankruptcy and create a plan for managing your debt.

• Consult with an attorney to determine the types of bankruptcy available to you and their respective impacts.
• Speak to a financial adviser about the short-term and long-term impacts of filing for bankruptcy.
• Examine your credit report and determine what debts can be discharged and what will remain after declaring bankruptcy.
• Create a financial plan for managing your debt moving forward.
• When you have a thorough understanding of the potential outcomes and have a plan in place, you can move on to the next step.

Utilize available resources to assist with navigating the bankruptcy process.

• Contact the National Foundation for Credit Counseling (NFCC) for assistance in finding a certified credit counselor in your area
• Contact the American Bankruptcy Institute (ABI) for assistance in finding an experienced bankruptcy attorney
• Utilize online resources such as the U.S. Courts website to find forms and other resources related to bankruptcy
• Research options such as filing Chapter 7 or Chapter 13 bankruptcy

You will know you can move on to the next step when you are familiar with the different available resources and have found the right credit counselor, attorney, and resources to help you file for bankruptcy.

Monitor your credit report regularly to ensure your debts have been discharged.

• Obtain a copy of your credit report and review it to ensure that all debts listed as part of your bankruptcy filing have been discharged
• Check your credit report at least once a year to ensure there are no errors or discrepancies
• If you spot any errors or discrepancies, contact the credit bureau and your attorney to resolve them
• Once all debts listed in your bankruptcy filing have been discharged, you can officially check this step off of your list and move on to the next step.

FAQ:

Q: What are the differences between filing for bankruptcy in the UK, USA, and EU?

Asked by Sarah on April 23rd, 2022.
A: Filing for bankruptcy in the UK, USA and EU can vary greatly due to the differences in their respective legal systems. Generally, filing for bankruptcy in the UK involves a process of application to the court of law and a trustee is appointed to handle the case. The trustee will look into the financial affairs of the debtor and decide whether they could pay back some or all of their debt. In the USA, filing for bankruptcy is done by applying to the US Bankruptcy Court and depending on the type of bankruptcy filed, there are different rules and regulations that must be followed. In Europe, each country has its own laws regarding filing for bankruptcy, but all countries must comply with European Union regulations when it comes to cross-border bankruptcies.

Q: What are some options for filing for bankruptcy if I don’t have an income?

Asked by Thomas on June 28th, 2022.
A: If you don’t have an income but still need to file for bankruptcy, there are a few options available to you. The first is Chapter 7 bankruptcy, which allows you to discharge all eligible unsecured debts such as credit cards and medical bills. Another option is Chapter 13 bankruptcy which allows you to reorganize your debt into a manageable repayment plan that you can afford. This plan will be based on your current income and expenses. Finally, if you don’t have any income at all, you may be able to file for Chapter 11 bankruptcy where you can restructure your business debt or reorganize your personal debt while protecting your assets from creditors.

Q: What if I am self-employed? How does that affect my ability to file for bankruptcy?

Asked by Emma on August 14th, 2022.
A: Being self-employed can make filing for bankruptcy more complicated as it can be harder to prove your income level. However, it is still possible to file for bankruptcy if you are self-employed as long as you can prove your income level and document your assets and liabilities accurately. Depending on what type of bankruptcy you are filing for (Chapter 7 or Chapter 13), you may need to provide additional documentation such as tax returns or business financial statements in order to qualify for certain provisions of the law. Additionally, it’s important to note that any business debts must be included in your filing so make sure that those are accounted for when calculating your overall liabilities.

Q: Can I file for bankruptcy if I’m not a resident of the country I’m filing in?

Asked by John on November 1st, 2022.
A: Generally speaking, yes, it is possible to file for bankruptcy even if you’re not a resident of the country where you plan on filing. However, there may be additional requirements that must be met depending on the country or jurisdiction where you plan on filing. For example, some countries may require that you have lived in the country or have had substantial business dealings there before allowing you to file for bankruptcy protection within their borders. Additionally, it’s important to note that certain types of bankruptcies may only be available to residents of certain countries so make sure you do your research before filing anything with the court.

Example dispute

Bankruptcy Lawsuits

• Research relevant bankruptcy law and regulations to determine whether the individual or business filing for bankruptcy has met the requirements for filing.
• Examine the information the individual or business provided with their bankruptcy filing to ensure it is accurate and complete.
• Investigate any potential fraudulent activities that may have occurred leading up to the bankruptcy filing.
• Assess whether a creditor has a valid claim against the individual or business for any remaining debts.
• Determine if there are any damages that can be awarded to the creditor (e.g., lost wages, medical bills, etc.).
• Negotiate a settlement agreement between the creditor and the individual or business filing for bankruptcy.
• File a lawsuit in court if the parties cannot reach a settlement agreement.
• If successful, the court may award damages to the plaintiff, including any unpaid debt, court costs, and attorney’s fees.

Templates available (free to use)

Adversary Proceeding Answer Bankruptcy
Adversary Proceeding Complaint By A Creditor To Determine The Dischargeability Of A Debt Bankruptcy
Adversary Proceeding Complaint For Injunctive Relief Bankruptcy
Adversary Proceeding Complaint For Turnover Of Property By Non Custodial Entity Bankruptcy
Adversary Proceeding Complaint Objecting To Discharge Of Individual Chapter 7 Debtor Bankruptcy
Adversary Proceeding Complaint Requiring Prepetition Custodian To Turn Over Property Bankruptcy
Adversary Proceeding Complaint To Avoid And Recover Fraudulent Transfers Bankruptcy
Adversary Proceeding Complaint To Avoid And Recover Preferential Transfers Bankruptcy
Adversary Proceeding Complaint To Revoke Confirmation Order Bankruptcy
Adversary Proceeding Complaint To Revoke Discharge Of Individual Chapter 7 Debtor Bankruptcy
Adversary Proceeding Complaint To Subordinate A Claim Bankruptcy
Annulment Of Bankruptcy Proceedings
Bankruptcy Appeal As Of Right Notice
Bankruptcy Reclamation Complaint
Bankruptcy Reclamation Demand Letter
Chapter 7 Individual Bankruptcy Engagement Letter
Motion By Section 1114 G Of Bankruptcy Code Seeking Modification In Payment Of Retiree Benefits
Motion By Third Party To Quash Or Modify Bankruptcy Subpoena
Motion Designate Votes Pursuant To Section 1126 E Of The Bankruptcy Code
Motion Dismiss Or Transfer Venue Of A Bankruptcy Case Filed In Improper Venue
Motion Objecting To Bankruptcy Discharge Of Individual Chapter 7 Debtor By Section 727 A 8 9 Of Bankruptcy Code
Motion Quash Or Modify Bankruptcy Subpoena By Subpoena Recipient
Motion Seeking Leave To Appeal Bankruptcy Court Order
Motion Stay Pending Appeal In A Bankruptcy Case
Motion Transfer Venue Of A Properly Filed Bankruptcy Case
Motion Withdraw The Reference Under Federal Rule Of Bankruptcy Procedure 5011
Plan Process For Chapter 11 Bankruptcy
Proposed Order Designating Votes Pursuant To Section 1126 E Of Bankruptcy Code
Proposed Order Dismissing Or Transferring Venue Of Bankruptcy Case Filed In Improper Venue
Proposed Order Granting Motion By Subpoena Recipient For Order Quashing Or Modifying Bankruptcy Subpoena
Proposed Order Granting Motion By Third Party For Order Quashing Or Modifying Bankruptcy Subpoena
Proposed Order Granting Motion Objecting To Discharge Of Individual Chapter 7 Debtor By Section 727 A 8 9 Of Bankruptcy Code
Proposed Order Granting Stay Pending Appeal In Bankruptcy Case
Proposed Order Transferring Venue Of Properly Filed Bankruptcy Case
Standard Creditors Bankruptcy Petition
Standard Residential Freehold Sale Contract By A Trustee In Bankruptcy
Trustee Deed Of Assignment Bankrupts Vested Interest In Jointly Owned Residential Property

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