When you file for bankruptcy, the courts eliminate most unsecured debts in order to restore your financial stability. The processes involved include multiple steps and a significant amount of paperwork. The guide below outlines the main phases of this process.

How to File for Bankruptcy

1. Complete Credit Counseling

Whether you file for Chapter 7 or Chapter 13 bankruptcy, you first need to take an approved credit counseling course. The course only requires a few hours of your time and is conducted online, and it must be completed within the 180-day period before you file. Credit counseling can be extremely helpful at this stage. It can tell you whether bankruptcy is the appropriate next step, and it can help you create a budget and make healthier financial decisions moving forward. The counseling agency will issue a certificate of completion that must be filed with the other paperwork.

2. Gather the Required Documents

A trustee is a court-appointed third party who represents your estate and oversees the bankruptcy proceedings. Different trustees require different documents, so it's important to find out what they will need before your first hearing. Bank statements, pay stubs, tax returns, inventories of assets, and lists of debts and creditors are just a few of the documents you may be asked to provide. Start gathering them early to ensure they are accessible, organized, and ready to submit upon request. 

3. Get Ready for the 341 Meeting

The 341 meeting is also known as the meeting of creditors, though it is highly unlikely that any of your creditors will actually attend. It's more of an opportunity for the trustee and other officials to ask about your debts and financial circumstances to establish the facts of the case and confirm that bankruptcy is the option you want to pursue. Approach the 341 meeting like a job interview: Dress professionally, answer all questions truthfully, and request clarification if you aren't sure what is being asked.

When filing for bankruptcy, let We the People of NY help you draw up the needed documentation. For over 25 years, they have been providing New York City with legal document preparation services, including bankruptcy filings. Call (212) 633-2200 to make an appointment, and visit them online to learn more about their services.