How To File Bankruptcy and Repair Your Credit
- 1). Gather up all of your debt. This should include anything that you would like to include in your bankruptcy. You can include credit cards, car loans, repossessions, medical bills, etc. However, you cannot include student loans or any federal debt.
- 2). Find a bankruptcy lawyer or decide whether you want to represent yourself. If you decide to have an attorney represent you, search online or through the phone book. Select four attorneys and research their background. Choose an attorney that has a track record of successfully discharging bankruptcy and experience negotiating with creditors. Schedule a meeting with the attorney, submit your documentation of debt and pay your retainer fee, if needed.
- 3). Select which debt you would like to keep and which ones you will include in your bankruptcy. Debt such as your vehicle, house and marriage rings can be included in your bankruptcy. However, if you want to retain these assets, inform your attorney so they can be negotiated for a lower interest rate and/or payment plan.
- 4). File the petition for your bankruptcy with the courts. Your lawyer will be able to complete this task; however, you personally will have to submit the check for the court costs.
- 5). Contact your attorney and have him schedule a time for you and him to meet with the Judge. At this time, your creditors can choose to come and argue their defense as to why the debt should not be discharged.
- 6). Obtain your discharge papers after the judge rules in your favor. These documents can be picked up at the courthouse or mailed to you or your attorney. Depending upon the courthouse, it can take approximately one to eight weeks for the documents to be ready for pickup. These documents act as your receipt of filing bankruptcy. A copy can be submitted to creditors included in your bankruptcy as proof of the debt being discharged.
- 7). Wait two to three months after receiving your discharge papers to apply for credit. The credit bureau should have updated your bankruptcy status by that time and a new credit score will be available. At that time you can search and apply for credit cards that are geared toward people who have filed bankruptcy or have a lower than perfect scores. These types of cards can be found on www.credit.com or by clicking the link in the resource section.
- 8). Contact your bank to apply for an unsecured credit card. This card is backed by your own funds and is subjected to finance charges by the bank. This card will allow you to build up your credit much faster.
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