Step-by-step guide to file for bankruptcy

On Behalf of | Mar 6, 2021 | Bankruptcy

Tennessee residents are no strangers to financial crises, especially nowadays when many households have experienced loss of income, medical emergencies or other setbacks. While some people are able to restore financial stability by restructuring their budget or adjusting their spending habits, others find themselves in need of additional financial tools, such as filing for bankruptcy. Nevertheless, there are eligibility requirements and steps that must be taken in order to process an petition.

Basic things to do to file for bankruptcy

No two people’s financial situations are exactly the same. Similarly, there is not a one-size-fits-all type of bankruptcy. However, each program has its own requirements and terms. Here are some basic things most people can do when they want to apply for bankruptcy protection:

  • Consult with someone well-versed in bankruptcy law.
  • Seek clarification of federal laws, as well as state guidelines.
  • Schedule required credit counseling sessions.
  • Take a means test if necessary.
  • Compile a list of secured and unsecured debts to provide to the court.
  • File application and participate in proceedings as necessary.

This list is not extensive but provides a basic overview of what the average person does when he or she is considering filing for bankruptcy.

Understand the differences between various bankruptcy options

Some types of bankruptcy, such as a Chapter 13 debt reorganization, for instance, are more complex than others. It is possible to qualify for one type of bankruptcy but not another. This is why it pays to speak with someone who is well-versed in all aspects of bankruptcy law in order to seek recommendations as to which type of bankruptcy may be the best option to fit a specific set of needs and financial goals.

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