Filing for Bankruptcy
You may file your bankruptcy petition at a United States Bankruptcy Court in, or closest to the county in which you reside.
There are 94 federal judicial districts that handle bankruptcy proceedings. The bankruptcy courts supervise and have litigation responsibilities over the bankruptcy process. The objective of a bankruptcy court is to give debtors a "fresh start" by relieving them of the majority of their debt, and lest we forget, to effectively repay creditors an amount that the debtor has available for payment.
Congress established the United States Trustees Program to further supervise and administrate bankruptcy proceedings. These entities work toward one single goal, to help relieve distressed debtors and help creditors recover some of their investments.
United States Bankruptcy Court Locations.
Bankruptcy Filing Process
A debtor who wishes to file for bankruptcy will receive a written notice of 'alternatives' containing:
- A description of chapters 7, 11, 12, and 13 and the purpose, benefits, and costs of filing under each chapter;
- A brief description of available credit counseling services;
- Warnings about penalties for concealment of assets and false oaths or statements; and
- Notice of the possibility of an audit.
The debtor (or debtor's attorney or bankruptcy petition preparer) must file a certificate with the court to show that the debtor received and read the notice of "alternatives".
If the debtor fails to file a certificate within 45 days after filing the bankruptcy petition, the case would be dismissed on the 46th day.
Credit Counseling
On April 20, 2005, President Bush signed into law 25 Changes to the US Bankruptcy Code. One of the changes requires that any debtor contemplating bankruptcy must first attend Credit Counseling with a service approved by the United States Trustee Program.
See the new bankruptcy law relating to Mandatory Credit Counseling and Mandatory Debt Education
Learn more about Credit Counseling
Bankruptcy Petitions
The debtor must file a bankruptcy petition (including its signature page), a mailing matrix (a list of the mailing addresses of your creditors and others whom the Court will have to notify of your filing), and the filing fee. If you do not file a matrix with your petition, the Court will issue an order requiring that you do so within a few days to avoid dismissal of your case.
It is highly recommended that you engage the services of a Bankruptcy Attorney. The Bankruptcy Laws are very specific and any misstep when filing your bankruptcy documents could result in your petition being disallowed.
Bankruptcy Case Name and Case Number
When filing any documents with the court, it is of the utmost importance that you include your name and bankruptcy case number. The Court has no other way of identifying the case to which your documents pertain.
Learn more about the specifics of Filing for Bankruptcy under Chapter 7 and the Bankruptcy Laws.
Cost of Filing Bankruptcy
Bankruptcy Attorney fees vary from community to community and from lawyer to lawyer. Obviously the fees your bankruptcy lawyer charges will also be dependent upon the complexity of your particular bankruptcy.
Although it may seem somewhat odd to actually pay money for legal advice to go bankrupt, the more assets you have or the more questions there are about the discharge of your debts, the more important it becomes to have an experienced bankruptcy lawyer to represent your cause. When it comes to bankruptcy law, bankruptcy code and having to attend bankruptcy court, a good lawyer is far better that a paralegal or doing it yourself.
When you represent yourself, you just might be betting your house that you know what you are doing in a U.S. Bankruptcy Court of Law.
Unike your lawyer's fees, U.S. Bankruptcy Court Filing Fees are standard nationwide.
Fees for filing a new bankruptcy case vary by the chapter of the bankruptcy code under which it is filed. Go to our Bankruptcy Filing Fees page to learn more about the cost of filing bankruptcy.
Filing Bankruptcy Online
There have come to be websites promoting the Filing of Bankrupty Online.
These online bankruptcy filing kits allow you to file for Bankruptcy in the Federal Bankruptcy Court in your area, from anywhere in the United States. If you have come to the conclusion that filing for bankruptcy is the only way out, these online bankruptcy kits claim to save you time and money. They include all the necessary forms and presumably, complete instructions on low to complete bankruptcy filing and a banakruptcy proceeding without an attorney.
In addition to the cost of these kits, you will be required to also pay the Bankruptcy Court Filing Fees.
In our experience, filing for bankruptcy online is probably not the best approach. Bankruptcy code and bankruptcy law can be intricate and complex, and there is no substitute for a good Bankruptcy Attorney when filing for Bankruptcy in the United States.
