Facing ever mounting and difficult to control debt, you may consider pursuing a bankruptcy. By filing bankruptcy, you obtain both immediate and long-term relief in regard to your debt. At the time you file for bankruptcy, creditors must stop collection actions against you until further order of the court. Ultimately, you obtain a discharge or your debts or use a court-ordered payment plan to satisfy your obligations over time. At the outset, you need to understand the basic procedure for filing bankruptcy.

Documents

The procedure for filing bankruptcy commences by taking care of important preliminary matters. The primary component of these preliminary matters is collecting and organizing documents necessary to pursue a bankruptcy case. You need to organize the most recent account statements from all of your creditors. The basic information contained on these account statements is included in the court forms filed to start your case. Gather together paycheck stubs for the past 90 days to document your income. Obtain copies of your federal income tax statements for the past three years and your bank account statements for the past three months for the same purpose.

Court Forms

The two primary forms you need to complete as part of the procedure for filing for bankruptcy are the petition and the matrix of creditors (in some jurisdictions, the matrix is known as the index of creditors.). The bankruptcy court clerk maintains the forms you need to file for bankruptcy. You obtain these forms both directly from the clerk's office and online. Most bankruptcy courts have a website that provides access to forms you download for use. Complete the petition. The petition requests basic information including your total debt, your assets and property you claim as exempt (your home, automobile and other personal items). Fill out the matrix of creditors. The matrix is document that lists all of your creditors, their contact information and the amount of money you owe to them.

Court Basics

Once you have organized your documentation and prepared the petition and matrix of creditors, you are prepared to file your case with the bankruptcy court. Some courts permit filing online. However, this is not the common practice in most bankruptcy courts. Plan on filing your petition and associated documents at the bankruptcy clerk's office. There is a filing fee associated with filing bankruptcy. The fee varies from one court to another. Call the court clerk's office and find out the fee you need to pay.

Source:

Cornell Law School: Bankruptcy Overview

Cornell Law School: U.S. Bankruptcy Code

"The Glannon Guide to Bankruptcy: Guide to Bankruptcy;" Nathalie Martin; 2006

More Information:

American Bar Association: Bankruptcy & Insolvency Litigation Committee

American Bar Association: Directory of State and Local Bar Associations