Bankruptcy is a legal action of a debtor to be free of debts. This is a privilege given to consumers who find themselves in situations that cause them undue hardships. Events like job loss, divorce, costly illness etc. that can lead to the racking up of their debts can be a decisive factor when deciding to file for bankruptcy. This helps consumers avoid to be taken advantage by creditors and lending companies. On the other hand, it is not so easy to qualify for bankruptcy, especially, chapter 7. To protect creditors from consumers who might take advantage of the bankruptcy system, limits were applied to the law.

Being declared bankrupt is not something one can get away with so easily. It is a legal state that requires you to involve the law. This means that when you have come to the end of the road in terms of paying your creditors, you have to acknowledge that you are bankrupt. This is especially true if you have tried other means of repayment and nothing seems to work.

Although it is not necessary to hire a lawyer when filing for bankruptcy, it is highly advisable because of the complexity of bankruptcy laws. It can be to your best advantage to seek legal advice to explore all the possible options. Hiring a lawyer can cost around $1,600 to $2,000. Should you choose not to hire a lawyer when filing for bankruptcy, it is best to obtain as much information as you can about the process. Ask around. Take into consideration all pros and cons.

How to file for bankruptcy without a lawyer includes deciding on your own between chapter 7 and chapter 13 will affect the chances you have for successfully filing a bankruptcy. Understanding both types can be a big help when deciding where to go from here. Chapter 7 is a liquidation of your properties in exchange that part, if not all your debts, will be discharged. Chapter 13, on the other hand, is a repayment plan which you and the creditors will come to a legal agreement. Understand as much as possible about this two types of bankruptcy, their difference and what advantage one has from the other.

The advantage of Chapter 13 is that you can keep your properties. With chapter 7, almost all your properties will be solved. The BAPCPA changes of the law last October 2005 have also encourage people to file a chapter 13 type of bankruptcy. The requirement of the new bankruptcy law states that you have to go to a credit counseling agency for a counseling session about credit. It is also required to provide a documentation of your attendance during the credit counseling sessions. The credit counseling agency will more or less provide you with a repayment plan.

The process of how to file for bankruptcy without a lawyer takes a lot of work. You do all the things, work and process needed to file bankruptcy but the advantage of it is that you will not have to spend a lot of money to file your bankruptcy.

What follows is that you have to file for bankruptcy with the court of insolvency. These courts are in every city and it’s up to you to find out where it is situated. If this fails then you can go through the process online. The process of declaring insolvency involves filing out some forms in which you must give truthful information regarding your financial position. The process of filing for insolvency alone can be quite a success, but only if you do it right. Getting the procedure right require that you have all the relevant information and that you get to understand how each chapter of the law affects you. It also requires that you understand under what circumstances your debts can be forgiven.

You should also be advised that filing for insolvency should only come as your last resort. This means that you should consider all the available options before you settle for it. With the new emergent laws of insolvency, it is highly recommended that you attend some counseling classes that will give you insight on what bankruptcy implies. By the end of the classes, you should be able to clearly understand the difference between chapter 7 and 13.

The forms must be accompanied by bank statements to support the claim that you are unable to pay your creditors. You and your creditors will then meet in court to deal with issues to do with repayment and agree on how it will be done. It is advisable to have a lawyer to represent you and plead on your behalf.

A provision will be passed by the court to prevent creditors from contacting the debtor for a month. This will give enough time for the court to process the case and also to prevent the creditors from seizing any property of the debtor. After a month, the creditors will be called for a meeting together with the debtor. The case will be settled but a judge will intervene if there is any objection. If things go as planned, the court will contact the debtor in four to six months to notify him of his discharge from debts.

Bankruptcy laws have changed drastically since the Bankruptcy Reform Act in 2005, rendering the proceedings all the more intricate and technically difficult to face up to. It is difficult enough for lawyer to keep up with the judicial system, let alone a private individual!

This is why nowadays, it is fundamental, to seek professional advice for all matters that refer to bankruptcy filing. After all, if you are lucky this will be the only time you have to file for bankruptcy, so it is best to proceed in the safest possible way, to obtain the best possible results from your bankruptcy.

However, if you still cannot afford an attorney, it would be important to be well conversant with the law so that you can represent yourself. One more advantage of having a lawyer is that he will handle any further correspondence with your creditors and keep you out of the picture so that you can have a peace of mind.