I spend a lot of time talking to people about their money problems. Often times, the conversation starts with a comment like, “I’m looking for information about how to claim bankruptcy.” We all like lists. Here is a concise list of the 10 key steps in filing for bankruptcy.
- Asset your debt. Gather information about who you owe and how much. The biggest part, quite honestly, is recognizing and acknowledging that you will be unable to repay all of your debts
- Talk to a trustee. At Hoyes Michalos the conversation can start over the phone or via email. Maybe personal bankruptcy is the most reasonable choice. Maybe there are better options that you hadn’t considered.
- Provide necessary information to complete all required forms. The trustee will prepare the appropriate paperwork from this information.
- Book a followup meeting to sign the paperwork and ask any further questions you may have.
- Your trustee will then file the documents with the federal government and notify the people you owe money to. Once your creditors have been notified of your bankruptcy, they have to stop contacting you.
- During bankruptcy you will be required to submit a monthly budget and make all necessary bankruptcy payments.
- Attend two credit counselling sessions.
- Once your duties are completed and you have finished the appropriate term of your bankruptcy, you will receive your discharge.
- Your debts are now eliminated.
- Begin the process of rebuilding your credit.
For many people, there is a huge emotional barrier in reaching out to a stranger about money problems. I get that. I met with a woman this week who thought that I would yell at her because of her problems. I’m here to help, not make you feel worse than you already do. Please feel free to call me at 519-747-0660 or send me an e-mail if you want to talk.