Can I file bankruptcy immediately?

[anonymous]

Can this be done ASAP?

[Bankruptcy Helper]

Many debtors want to know how soon they can file for either Chapter 7 or Chapter 13 Bankruptcy and what needs to be done. The bankruptcy code was updated in 2005 to make it more difficult for debtors to discharge their debts.

Under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) debtors will not be immediately able to file bankruptcy without completing some basic legal requirements.

• Means Testing

The BAPCPA outlined some financial requirements which debtors must meet to be able to file Chapter 7 Bankruptcy. Debtors who do not meet these requirements will have to file Chapter 13 Bankruptcy, and instead of immediately discharging debts, debtors will complete a 3 to 5 year debt repayment plan to repay a portion of their unsecured debts.

How do you determine if you can file for Chapter 7 Bankruptcy? The testing examines your income for the last six months, and if it is below the median for your state, you will qualify for Chapter 7 Bankruptcy. If it is not below the median income a series of calculations are completed to determine if you can repay your debts.

Basically the calculations will examine your income, subtract certain allowable expenses and determine if you have at least $100 per month to pay your creditors. The court will also evaluate if you would be able to pay at least $10,000 or 25% of your unsecured debts over a five-year period.

• Complete a Credit Counseling

Mandatory credit counseling was also added under the new bankruptcy laws. Prior to filing for either Chapter 7 or Chapter 13 Bankruptcy you must complete an approved credit counseling course.

• Complete a Financial Management Course

Mandatory financial management training must also be done prior to the discharge of your bankruptcy. This course does not have to be completed prior to filing for Chapter 7 Bankruptcy so it will not delaying filing, but completion of this course is required prior to the discharge of your debts.

There are a variety of approved courses. To find an approved course in your area you can review www.usdoj.gov/ust.

• Talking to a Bankruptcy Lawyer

One of the most important things to do before filing for bankruptcy is to talk to a bankruptcy lawyer. Bankruptcy lawyers can review your financial situation and determine whether filing bankruptcy is right for you. Bankruptcy is a serious financial decision which should not be done before determining if it is the best financial solution.

How soon after I file bankruptcy will my debts be discharged?

Chapter 7 Bankruptcy is the easiest and fastest way to discharge debts. Unless the Chapter 7 Bankruptcy case is dismissed, converted to Chapter 13 Bankruptcy, or a party of interest in the case files an extension or objection most discharges will occur within 60 to 90 days.

Chapter 13 Bankruptcy does not automatically discharge debts and the debtor will not receive a discharge of qualifying debts until they have completed their 3 to 5 year debt repayment plan.