How to Discharge Debt with Personal Bankruptcy
- 1). First, in order to file for either chapter of personal bankruptcy, you will need to gather up your documentation. Get copies of your last five years worth of income tax returns, copies of paystubs, copies of all of your credit card statements and bills, and any mortgage or loan documentation. This information will all be needed to create your "schedules" for personal bankruptcy.
- 2). Next, take all of this information and visit at least two bankruptcy attorneys. Pick an attorney you trust and that you understand. It helps to ask people in the waiting area about their experiences with the bankruptcy attorney. Ask them how easy it is to contact the attorney when needed and the response time to questions.
- 3). Discuss the different chapters of bankruptcy with your bankruptcy attorney. A chapter 7 bankruptcy will essentially liquidate your estate to pay off your creditors while a chapter 13 bankruptcy will create a repayment Plan. Discuss with your attorney which chapter is best for your situation.
- 4). File your bankruptcy case with the bankruptcy court and have your Plan confirmed. Your bankruptcy attorney can help with this step. You will need to appear at a meeting of creditors and/or a confirmation hearing to confirm your bankruptcy Plan. A Trustee will review your documentation and make a recommendation to the Bankruptcy Court who will make a final ruling.
- 5). Finally, in order to have your debt discharged, you will need to have a final Order of Discharge from the Bankruptcy Court. Many people mix up the terms "dismissal" and "discharge". They are very different in bankruptcy. If a case has been dismissed, you still owe all of your debt and your case has been thrown out of bankruptcy court. If your case has been discharged, it is considered successful and all debt included under the bankruptcy Plan is discharged.