Know The Step-by-Step for Filing Bankruptcy
Bankruptcy offers a path toward financial relief. However, the process can seem difficult, especially when confronted with many bankruptcy forms. Understanding these forms and completing them is important for a successful filing in Kansas City, MO.
Quick Summary:
- Before filling out any bankruptcy forms, determine first whether Chapter 7 or Chapter 13 is best for your situation. Both chapters have differences.
- There are several essential forms of bankruptcy, such as Voluntary Petition (Form 101), Statement of Financial Affairs (Form 107), Chapter 13 Repayment Plan (Form 113), and more.
- Filing for bankruptcy consists of several different steps, such as determining your eligibility, filling out bankruptcy forms, and more.
- Errors can delay or dismiss your case, so strict care must be taken when filing out your bankruptcy forms.
Which Bankruptcy is Better For My Situation?
Before filling out any forms, you must consider your financial situation first. Here are some factors to consider when choosing between the two common bankruptcy types:
Chapter 7 Bankruptcy
Chapter 7 includes liquidating most unsecured debts through a court-appointed trustee. The trustee sells non-exempt assets to repay creditors.
- Eligibility: This bankruptcy is based on a means test. The test compares your income to the Kansas City, MO, median. If your income is below the median, you’ll likely qualify for Chapter 7.
- Benefits: Chapter 7 takes three to six months to process. It leads to a complete discharge of most unsecured debts upon completion.
- Drawbacks: Chapter 7 may need to sell some assets to pay creditors. It does not remove secured debts or certain priority debts.
Chapter 13 Bankruptcy
Chapter 13 consists of a repayment plan developed under court supervision. This plan allows you to keep most assets while paying back a part of your debts over three to five years.
- Eligibility: It has no strict income limits. But, you must have a steady income source to propose a workable repayment plan.
- Benefits: It allows you to keep your assets, including your home and car, if you stay current on payments. It can cut some tax debt and certain penalty fees.
- Drawbacks: It has a longer process with ongoing monthly payments for three to five years. It also requires strict adherence to the court-approved repayment plan.
What are the Essential Bankruptcy Forms?
The specific forms for bankruptcy may vary depending on the court district. Below is a breakdown of some of the most common bankruptcy forms you’ll encounter:
- Voluntary Petition (Form 101): This form officially initiates your bankruptcy case. It details your filing type, your marital status, and your financial situation.
- Schedules: These forms provide a detailed picture of your financial circumstances. Many schedules cover assets, liabilities, income, and exemptions.
- Statement of Financial Affairs (Form 107): This document provides a deeper dive into your financial history.
- Means Test Calculation (Form 122A-1 for Chapter 7): This is a form applicable only to Chapter 7 filings. It helps determine your eligibility for Chapter 7 based on your income and expenses.
- Chapter 13 Repayment Plan (Form 113): This form outlines your proposed plan to repay creditors over a three to five-year period.
- Statement of Intention (Form 108): If you have secured debts (like a mortgage or car loan), this form outlines your intentions about those debts.
- Credit Counseling: You must complete counseling from an approved agency. After filing, you must also complete a debtor education course. Both certificates must be filed with the court.
These are a few of the essential bankruptcy forms you’ll encounter during the process. Depending on your financial situation and the requirements of your jurisdiction, you may need to fill out more forms. It’s important to ensure accuracy and completeness when completing these forms.
What is the Process for Filling Out Bankruptcy Forms?
Filling out bankruptcy forms in Kansas City, MO, follows a specific process to ensure accuracy and compliance with local laws. Here’s a step-by-step guide to help you navigate the process:
- Determine Your Eligibility: Before filling out any forms, you must determine if you’re eligible for bankruptcy and which chapter suits your situation.
- Gather Your Financial Documents: Collect documents like pay stubs, bank statements, tax returns, and mortgage statements. These will be crucial for completing the forms accurately.
- Fill Out Bankruptcy Forms: The next step is to fill out the required bankruptcy forms completely. While it’s possible to find bankruptcy forms online, remember, accuracy is crucial. Filling out bankruptcy forms correctly ensures all information is included and minimizes delays. Mistakes can lead to complications or even dismissal of your case.Â
- File Your Forms with the Bankruptcy Court: Once your forms are completed, you’ll need to file them with the bankruptcy court in Kansas City, MO. Along with your forms, you’ll also need to pay the required filing fee or request a fee waiver if you qualify based on your income.
- Attend the Meeting of Creditors: After filing your bankruptcy forms, you’ll be scheduled to attend a meeting of creditors, also known as a 341 meeting. During this meeting, the bankruptcy trustee will ask questions about your financial affairs.
- Complete Debtor Education Course: After filing for bankruptcy, you must complete a debtor education course from a court-approved provider. Once completed, you’ll receive a certificate, which must be filed with the court to receive a discharge of your debts.
- Follow Court Orders and Requirements: It’s essential to follow any court orders and requirements. That may include providing more documentation, attending hearings, or more.
Get In Contact With Our Bankruptcy Lawyers Today!
Bankruptcy forms may seem like a hurdle you need to overcome alone. However, seeking guidance from a trusted bankruptcy attorney like those at Jeppson Law in Kansas City, MO, can make a world of difference.
Our lawyers can help you navigate bankruptcy, understand your options, and secure a fresh financial start. We will assess your situation and recommend the best course of action. Whether Chapter 7 for complete debt discharge or Chapter 13 for repayment plans, we have an answer for you.
Our bankruptcy attorney can simplify the process, ensure accuracy, and help you achieve a financial fresh start. Don’t risk mistakes – seek legal guidance for a smoother and more effective bankruptcy process.
Contact us today and get a free bankruptcy consultation today!
