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Before a person who thinks of filing bankruptcy goes ahead on this action, he must weigh things very seriously first, no matter how desperate he is, because filing a bankruptcy is not just another normal thing. It has a lot of consequences, and most of them might not be apparent at the moment.

During the statutory procedure of bankruptcy, the debtor seeks financial relief and goes through the court, and his assets are the liquidated for the benefit of creditors. It grants others who are are heavily in debt to either work out a payment plan, or completely eliminate their bills all together.

Filing for bankruptcy could be complicated at times, but with a proper strategy in place, the process can go much smoother.

Listed below are the following procedures for filing bankruptcy. They include gathering paperwork, filing bankruptcy, automatic stay, bankruptcy trustee, and meeting of the creditors.

The most essential step to begin the bankruptcy filing process is gathering paperwork. One must itemize his current income sources; major financial transactions for two years; monthly living expenses; debts, both secured and unsecured and property which includes not only real states but all assets and possessions. One should also collect his tax returns for the last two years, deeds to any real estate owned, car titles and documents for any loan.

Once the necessary documents are gathered, one should then determine which property is exempt from seizure based on the exemptions provided by his State. This is the point where in bankruptcy may compare brand levitra be filed. You are required to file a two page petition and other forms at a bankruptcy district court closest to you; this involves either you or the counsel. These documents, also known as the schedules, require you to give details on your past and current financial transactions. If the creditors or the judge feel or find out that you have not been thorough in your account of your financial status, it could jeopardize the outcome of the petition.

When the gathered paperwork has been filed with the bankruptcy court, the next step on how to file bankruptcy is an automatic stay immediately goes into effect. This provision prevents creditor from making direct contact to the person filing for bankruptcy, or staking a claim on any of the property of the person involved. This will also prevent any foreclosures from happening.

Upon filing of bankruptcy, the court will assume legal control of the debts and property not covered by exemptions. A trustee will be appointed by court to see that creditors are paid as much as possible. They are also responsible for reviewing paperwork, as well as the assets. Any element of the bankruptcy case can also be challenged by the trustee.

Lastly, at the end of the term, the balance on the debt will be discharged. At this point, you are clear from your debt problems.

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