Guide to Online Bankruptcy Filing Procedures
Learn the essential steps to filing for bankruptcy online, including choosing the correct chapter, completing necessary forms, and understanding legal requirements. This guide helps navigate the process efficiently, with tips on legal advice and mandatory counseling courses to ensure a smooth filing experience.
Understanding the differences between Chapter 7 and Chapter 13 is essential before starting your online bankruptcy submission. Chapter 13 allows you to restructure debt over 3 to 5 years, whereas Chapter 7 involves liquidating assets to settle debts, often simplifying the process. Consulting with a legal expert is recommended to determine the best option for your situation, as exceptions and alternatives may apply.
To commence your online bankruptcy filing, first download the official free forms from the US courts website. Next, follow these steps:
Complete the Means Test
This test determines your eligibility for Chapter 7 by comparing your income to the median income in your state. If your income is below the median, you may qualify. Otherwise, additional factors are reviewed.
Legal guidance is advised due to the complexity of legal terminology involved.
Attend Credit Counseling
This mandatory step requires completing a credit counseling session from a government-approved agency within six months of filing. You will need the certification to proceed in court.
Complete Bankruptcy Documentation
Start with form B101, the voluntary petition. Provide details about your creditors, expenses, and financial status in subsequent forms.
Submit Your Petition
Filing your petition initiates the court process. For Chapter 7, a trustee will be assigned to liquidate non-essential assets.
Finish the Financial Management Course
Within 45 days of your initial meeting, attend an approved debt education course in person. You’ll meet with a trustee during this process.
Is a lawyer necessary for online bankruptcy? The answer varies, as some states lack complete DIY e-filing systems. You might need a lawyer or opt for a bankruptcy petition preparer—an authorized non-attorney who handles documents for a fee.
