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Bankruptcy - continued
To file for bankruptcy, you are generally required to:

Under go a “means” test in which your income, assets, expenses, debts, personal background and financial information are sorted.

Receive credit counseling from a government-approved organization within six months before filing.

Submit a repayment plan to be approved by a bankruptcy court.

Attend a meeting with your creditors.

Assuming your repayment plan is approved, you begin submitting regular monthly payments to the court-appointed trustee who is responsible for sorting the payments and sending them to your creditors. The repayment plan usually takes 3 to 5 years to complete, depending on your salary.

However, many chapter 13 bankruptcy filers do not make it through the repayment plan due to repeated unemployment or other unexpected expenses.

The Consumer Law Center is an alternative to bankruptcy. Many of our clients were burdened with overwhelming debt and considering bankruptcy but chose our program when they understood how we can help them get out of debt and avoid bankruptcy.

There are pros and cons to filing bankruptcy. It is important that you understand the process and the risks before taking this drastic step. To learn more about bankruptcy, you should talk to a licensed attorney in your state who is competent on these matters.
________________________________________________________________________ Disclaimer: The Consumer Law Center will not perform bankruptcy's and under no circumstances should the information on this page or website be construed or relied upon as legal advice. If you need legal advice, you should contact an attorney licensed to practice law in your state.