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How do I file a bankruptcy petition? What are the procedures involved in filing a petition for relief under the Bankruptcy Code? Basically, they are these: first, you (or your attorney) prepare a petition, together with schedules of what you own and what you owe, and complete a statement concerning your financial affairs. These documents are then filed with the Bankruptcy Court, together with a filing fee of $160. If you cannot afford the fee, you can file without it, applying to the Court for permission to pay the filing fees in installments after the petition has been filed. The Court will notify your creditors of your filing, and you will be required to attend a meeting of your creditors at which you will be required to answer questions about your assets and financial affairs. In a Chapter 7 liquidation case, the Court will appoint a Trustee, whose duties will be to examine claims creditors may file and determine whether or not they are proper, and to divide the proceeds of your non-exempt property among your creditors. The Trustee will question you about your property and the schedules you have filed at a meeting of creditors. Some of your property may be exempt from the claims of your creditors. Working tools, insurance, household furnishings, radios, television sets, musical instruments, some bank, savings and loan or credit union accounts, your automobile, your home and other property you own may be exempt, if the value of your equity is within certain limits, and if you have taken the proper steps to claim exemption. However, if you have not already reviewed message Number 1200 entitled "Can Bankruptcy Help?" we suggest you request it. About three months after the meeting of creditors, the Court will hold another hearing in Chapter 7 liquidation cases which you will also be required to attend. It is vitally important that you keep the Court advised in writing of any changes in your mailing address, as notices for this and other matters are mailed. At the Court hearing, the Bankruptcy Judge will inform you about your discharge and consider any reaffirmations of debt you wish to make. You will have certain duties which you must perform if you file a petition for relief under the Bankruptcy Code. You must do everything reasonably necessary to cooperate with the Trustee in collecting the estate and records pertaining to it. You may be required to make further Court appearances, and if the Trustee or creditor objects to your being discharged from any particular debt, you will have to appear in Court to defend your discharge. You may wonder if you need an attorney in order to file bankruptcy. The law does not require an individual to have an attorney. But bankruptcy is strong medicine and, like all strong medicines, can be dangerous if not used in the proper manner, at the proper time. Also, the filing of a Bankruptcy Petition is only part of a program to regain financial health, and must be coordinated with the other parts if it is to be effective. If your petition is filed at the wrong time, you may find that the debts you have transferred to your creditors, friends or family may have to be returned to a bankruptcy Trustee. Further, you will not be permitted to file bankruptcy again for six years. Omitting or improperly listing creditors can result in your still owing their debts after the bankruptcy has ended. Some of your property, which can be made exempt from the Trustee's taking, will be exempt only if you take certain steps to complete the exemption before you file bankruptcy. Appropriate insolvency planning before your petition is filed can often save you money in the long run. Moreover, there may be problems with respect to the discharge of certain debts. These problems should be discussed with an attorney before Bankruptcy is filed, as they may make it unwise to file Bankruptcy at this time. A Chapter 13 Wage Earner Plan can be used to avoid many of the difficulties debtors formerly encountered under prior Bankruptcy Law. It allows you to repay creditors out of future earnings while retaining your property. Your attorney should be able to assist you in choosing whether a Chapter 13 Wage Earner Plan would be better for you than a Chapter 7 Liquidating Bankruptcy. If you have a business that is in financial trouble, or if you are faced with the threat of a foreclosure on your home, you should contact a lawyer promptly for consideration of the benefits of filing bankruptcy. Guidance in deciding what type of case, when or if you should file, and other problems, may well require the attention of an attorney, preferably one with substantial experience in Bankruptcy Law. The information available through TBALink LawBytes is basic legal information and is not a substitute for legal advice. LawBytes is provided by the Tennessee Bar Association as a public service and for general information only. It should not be considered legal advice. You should consult your attorney if you have questions concerning any specific situation. If you do not have an attorney, may we suggest that you contact your local bar association's referral service. The topics covered through TBALink LawBytes will provide basic information and should make it easier for someone with a problem to decide whether they need professional help from a lawyer or if another agency could provide them with assistance.
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