Monday, July 16, 2012

How to File For Bankruptcy [mortgagefraud101.blogspot.com]

How to File For Bankruptcy [mortgagefraud101.blogspot.com]

Officials in San Bernardino, which announced last week that it intended to file for bankruptcy, had known for years that the city's finances were becoming critical. Two years ago, the City Council learned that San Bernardino's $ 22-million budget ... San Bernardino bankruptcy: Officials knew of risks for years

Sometimes when you we get in over our heads with debt, we don't know what to do. The best thing to do is to pay off your debt, but you can't manage that, you might be forced to file for bankruptcy. How do you file for bankruptcy?

In order to file for bankruptcy, you need to start by filing a petition. You can do this whole process on your own, or you can use a lawyer. Having a lawyer work with you will be a lot easier and less stressful, but if you can't afford one, you have another option.

Once you file the petition, a trustee will be appointed to your case. You can either file chapter 7 bankruptcy or chapter 13. Chapter 7 is the liquidation of your debt and 13 is the reorganization.

You will then participate in a meeting of creditors where you meet with the trustee and all your creditors and they ask you questions to ensure that you are being honest and truthful about everything.

Also, once you send in your petition, you get automatic stay which means creditors are not able to call you anymore. You might not be able to get automatic stay if you have previously declared bankruptcy before.

Eventually, your trustee will decide which of your debts will be discharged if filing chapter 7 or how it will be reorganized if chapter 13. Once this is finished, the creditors have 60 days to challenge the decision if they want. After that, you are clear from those debts as specified in the agreement.

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