- 1). Consult with an attorney who specializes in bankruptcy. Unless you have filed for, or are otherwise experienced in, bankruptcy, it is best to seek the advice of a bankruptcy attorney. Although it is possible for individuals to represent themselves in a bankruptcy proceeding, the process can be difficult. Businesses are required to seek counsel. If you don't know of a bankruptcy attorney, you can find one on FindLaw, an online service.
- 2). Consider the benefits associated with a Chapter 7 filing. With the assistance and advice of competent counsel, determine whether a liquidation or a reorganization is best suited for your needs. A Chapter 7 filing is usually a last resort filing because subject to certain exemptions, you lose most of your assets in exchange for the discharge of your debts. This might be more of a problem than a reorganization, if you are supporting another family member because you might be left with very little in exchange for a clean slate.
- 3). Compare the benefits of Chapter 7 with those of a Chapter 13 filing. Generally, if you want to keep most of your assets and make payments according to a court-approved plan, you will need to file under Chapter 13. Depending on your personal circumstances, this may be the better option to work through your debt problems.
- 4). File a petition in U.S. Bankruptcy Court. Ideally, your attorney should file the petition on your behalf. The petition requires information on your assets and debts. In the case of a business, information is also required on the nature of such business.
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