by Shelly 7296

Created on: June 02, 2010   Last Updated: June 07, 2010

To qualify for bankruptcy,. If you want to file a Chapter 7 bankruptcy you have to prove that you cannot pay your bills.

You will hire an attorney, the attorney will ask you for your income tax information for the prior year and your income from your jobs. If you prove that you  cannot pay all of your bills then you file a petition for bankruptcy, Your attorneys secretary will type up the petition then you will sign the forms, You then will have to take a credit counseling course which you can take online . Before your petition goes to court the person will watch a long movie about bankruptcy and then after the movie you will talk to a credit counselor who will try to make sure you do not go through another bankruptcy;. Then after your case go to the courts you will go to same credit counseling service again  and take a test and it will cost to get a certificate that you will give to your attorney and he will give to the courts to prove that the person completed the credit counseling course. If you cannot prove that you took the credit counseling course your case will be discharged.

With a Chapter 13 bankruptcy, the person has too much debt and they want to reorganize their debt and pay the debt with little interest or no interest at all.

With a Chapter 13 bankruptcy you do not have to hire an attorney, the court will appoint a trustee to help the person reorganize their debt. That person will also have to take a credit counseling course which can be taken online. Just like Chapter 7 bankruptcy you watch a movie before the petition goes to court about bankruptcy and then you talk to a credit counselor, then after your petition goes to court you will go back to the same credit counseling service and take a test and then pay for a certificate proving that the credit counseling course was taken.  You will file a document called a matrix that will have all of the person creditors and the creditors addresses to the court. You will also make a plan on how you are going to reorganize your debt, it will include income, liabilities, all assets, monthly expenses, past financial history.

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