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Steps On How To File For Personal BankruptcyPersonal bankruptcy is a very serious decision. One has to carefully weigh his optionsand the consequences of his decisions before taking this step. Bear in mind that a recordof bankruptcy will stay on your personal credit report for at least seven years.A record of bankruptcy will impose certain limits and restrictions on your future plans.Therefore, being stuck in bad credit doesn’t mean you have to think about filing for  bankruptcy right away. Consider all other possible options first to recover from bad debt. Nevertheless, if you made the decision and if you’re ready to go through the whole process, here are the steps you should take when filing for personal bankruptcy.
Seek credit counseling.
In the past, a person who decides to file for bankruptcy can justfill out an application and submit. However, since the amendment of the bankruptcy law,this decision is not up to the individual anymore.In order to know if you’re eligible for bankruptcy, it is mandatory to first complete acredit counseling course from a government accredited agency. The credit counselingagency would be the one to decide whether you are a candidate for bankruptcy or not.In case you’re not eligible for bankruptcy, rest assured that the credit counseling agencywill help you get out of your debts more easily. They can negotiate with your creditorsfor a more convenient repayment plan and you will receive guidance and support inmanaging your finances. The good thing about this arrangement is that you can rebuildyour credit report without resorting to bankruptcy.
Hire a bankruptcy lawyer.
If you are eligible for bankruptcy, you must hire your own bankruptcy lawyer. Preparing the documents needed to start the bankruptcy process iscomplicated and should only be accomplished by an attorney.Your lawyer must see to it that all the information on your documents are correct to avoid being accountable. Because of the weight of this responsibility and the many tasksinvolved in filing for bankruptcy, a bankruptcy attorney may ask a high service fee for hisservices.
Pass the “IncomeMeans Test Calculation”.
After submitting your bankruptcyapplication, you will submitted to the “income means test calculation”. Here, your income would be tested as to whether you are capable of paying your creditors or not.If the result of your “means test” falls below the required capacity, you will be eligible tofile for Chapter 7 bankruptcy. If it’s beyond the income requirement, then you wouldhaveto file for Chapter 13 bankruptcy.
Chapter 7 Bankruptcy.
If your application for bankruptcy chapter 7 is approved, thenyou are immediately discharged from all your debts to your creditors. However, bear in
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