Big Steps For You In Counseling Bankruptcy

Posted by Nick Niesen on October 29th, 2010

There are many things that you can do in order to prepare yourself for bankruptcy, and in order to make sure that you are ready for what is going to happen next.

Getting counseling bankruptcy is the best thing that you can do in order to get yourself ready for the issues that will come up when you file for bankruptcy. You are going to want to think carefully about all of the issues that will come up, including what will happen to your family and to your property. At counseling bankruptcy, you will be able to have someone take a look at your various situations and tell you what you can do to make it all go more smoothly for you and for your property and family.

Often, mistakes are made when you file for bankruptcy simply because you don?t know what you are doing and are afraid to tell anyone that. Many times people are very proud, and even though they are filing for bankruptcy they don?t want to have any other help or ask any other questions, they feel that they can do it on their own. However, if you don?t take advantage of the counseling bankruptcy, you might find that doing it on your own simply doesn?t give you the best options. When you go for it completely on your own, you might find that you make mistakes, and end up owing more money. You also will find out that by going to the counseling bankruptcy, you will be able to get the best deal for your certain situation.

In order to file bankruptcy in the state of Delaware you are required to receive credit counseling with in a six-month period, prior to filing for bankruptcy. This was put into place after the Bankruptcy act of 2005. It became effective after October 17th, 2005. There is another requirement that is needed to file bankruptcy in Delaware and that requirement is a mean test. A means test is performed by taking your average income for the six months prior to filing bankruptcy and compares that to the median income for the state. Where your income level falls will depend on which chapter of bankruptcy you will be eligible to file. If your income level falls below the median, you are eligible to file chapter 7. If your income falls above the median, you will have to wait for further comparison results to provide you with your eligibility conclusion.

Each state offers a varying range of laws and procedures for bankruptcy filing, though the actual process of bankruptcy is much the same. It is mainly an administrative process that is held outside of the court. A bankruptcy judge carries the final decision on which chapter you are eligible to file. Depending on the details of your specific case and which chapter you do file may mean more time in or out of the physical court. Bankruptcy with a chapter 7 is taken care of outside of the court, while chapter 13 is carried more inside the court itself.

In order to see where you stand in a bankruptcy claim you should speak with a qualified bankruptcy attorney. They will be able to provide you with the requirements by state and what information is needed from you. Your income, debts and assets will have to be reviewed to see which procedures will be put in place to free you from your debts. You can find a bankruptcy attorney in your local phone book or by searching online. Speak with a bankruptcy attorney today and you could be well on your way to financial freedom.