Diana Metz`s Finance Blog

Many people have recently come across reasons that make them want to use a do it yourself bankruptcy method. Some of these reasons can include not trusting a lawyer, not being able to afford a lawyer or advisor, or just generally having the feeling of being scammed. At some point or another we have all heard horror stories about loved ones or friends being in one of these situations. Therefore, if you are thinking about do it yourself bankruptcy, there are some things you need to think about and research on your own.

To begin this process you must decide which bankruptcy you are going to file. There are some differences between Chapter 7, Chapter 11 and Chapter 13. Next you will have to get the proper forms to file. Please be aware that sometimes this will be over 100 forms that you will have to read, understand, and sign. You will also have to investigate what the laws are in your state. Each state has its own set of bankruptcy laws and you need to determine which laws pertain to you and your particular state.

You will have to file your paperwork in the US District Court, Bankruptcy Division in your state. Be aware that you may have to pay a fee for filing paperwork with the court. This fee varies from state to state so there is no way to tell how much you may have to pay. There may also be a way for you to have this fee waived or dismissed, so be sure to check into this to see if it’s an option. If you are filing for Chapter 7 or 13 you will be assigned a trustee. This person will be assigned to you by the court and will look at your assets to see if there are any to go towards paying your debt. They will also guide you in which if any assets to keep.

There are many reasons to go with the do it yourself bankruptcy method, but you must be willing to be patient and have confidence that you can endure this process by yourself.