What Do I Have To Do To File For Bankruptcy?

To declare Bankruptcy one has to file a petition in a bankruptcy court by filling a form declaring one's debts, the names and addresses of the creditors and one's current financial situation by providing information about one's assets including property and vehicles and income.

The procedure is generally conducted by way of a bankruptcy attorney and involves making decisions on the type of bankruptcy option suitable for the client's particular case as also the intricacies involved like the assets that are to be made exempt from liquidation in case of a Chapter 7 bankruptcy and to decide beforehand the amount of monthly payment to be made in case of Chapter 13 bankruptcy.         

The trustee a court appointed official in charge of the procedure convenes a meeting of creditors and the client during which the client is questioned regarding his financial assets and the mode of repayment after which the trustee on behalf of the creditors initiates further action like selling the non exempt assets to settle the debts or ensures that the terms and conditions of the bankruptcy proceedings like monthly fixed payment a are being followed.

The procedure is somewhat similar in the UK where the trustee is a civil official or a licensed Insolvency practitioner.