How to file for bankruptcy
How to file for bankruptcy and which bankruptcy should one file this two question revolves in everyone's mind, but if a person consider few point than he can easily deal with filing bankruptcy
Bankruptcy filing process if difficult and the decision as to which bankruptcy one should file is very confusing. Bankruptcy should only be opted when there are no other options left with the debtor. But in few cases, the debtor has no other choice than filing bankruptcy. In this case, he can contact Bankruptcyonly for more details on filing bankruptcy, it services are credulous and excellent. Filing bankruptcy online can also be done and there are many online websites which provide bankruptcy services. Below given are the few points which will help a person to decide which bankruptcy he should file either chapter 7 or chapter 13 bankruptcy.
6 months income
The first step is to evaluate the income of the last six months. How to file chapter 7 bankruptcy revolves in everyone mind but to qualify for chapter 7 the gross income should not exceed the median income in the first six months.
Present expenses and monthly income
The next step is to evaluate the expense and the monthly income; one can do this b reviewing the recent pay stubs. Its vital to exclude the deductions for garnishments and other pre and post tax deduction. The present monthly income of both the spouse should be calculated and then the current monthly expense which includes rent, car payment, food, home maintenance, mortgage payment, clothing etc. One should not include credit card expense, past medical bills and other debts.
Assets evaluation
For filing both chapter 7 and 13, one should disclose all his assets he owns as the time of filing bankruptcy. All the assets should be showed to the lawyers because if they are not disclose than according to the chapter 7 and chapter 13 bankruptcy information they will be lost in the bankruptcy case. Few assets are exempted and that differs from state to sate bankruptcy exemption laws.
Calculate total debt
The next is to calculate the total amount of debt. If the unsecured debt amount exceed the client yearly income than chapter 7 bankruptcy petition is the apt choice. If the monthly mortgage, auto and other debt exceed the monthly income then the debtor can file both chapter 7 and chapter 13 bankruptcy. But if the client has any significant tax or other unsecured debt then chapter 7 filing is not an apt option and in this case he can surely file for chapter 13.
Financial affair
The final step is to check the financial affair; in the chapter 7 filing a number of dealing can create havoc in the case. Transfer of assets to a family member in the leading year of the bankruptcy case in one such affair. Thus this should be strictly prohibited to solve the problems.
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