Filing for Bankruptcy Online
Personal bankruptcy offers individuals the chance to get out from under crippling debt and start over financially. The only way to file for bankruptcy is by filing a motion in a federal court. However, online services can help you prepare the documents you’ll need if you choose to file for bankruptcy without the guidance of an attorney.
Purpose
Filing for bankruptcy online doesn’t actually present your information to a court that can process your case. Instead it simply allows an online preparer to gather the necessary information and fill out the legal forms that you’ll need to present to the court. Fee-based agencies allow you to submit your information through a web server and then return digital copies of everything you’ll need for you to print, sign and take to your local branch of the federal court. Online bankruptcy services can prepare your forms in a matter of hours or days depending on demand and what speed of service you’re willing to pay for.
Requirements
Besides choosing an online bankruptcy service and paying the fee, you’ll need to provide several pieces of information to file online. These include proof of income, such as a pay stub or recent tax return, as well as proof of debt. Proof of debt may include credit card bills, a copy of your mortgage and most recent statement, any outstanding medical bills and other long-term loan statements or bills that contribute to your financial hardship. Online bankruptcy filing services usually offer a step-by-step guide with forms for you to enter your information and upload documents for processing, ensuring you don’t leave anything out.
Online Resources
Another requirement for all individuals who plan to file for bankruptcy is a means test. A means test measures your income relative to your debts and determines whether your bankruptcy case is legitimate. In general, if you earn enough to pay your debts you’ll fail the means test and be unable to file for bankruptcy. Means tests are available online both in free estimate versions and paid versions that include more detailed information and results. Other online resources include the United States Court website, which details the bankruptcy process, your options for filing and the benefits or hiring an attorney.
Alternatives and Next Steps
Bankruptcy attorneys are the key alternative to online preparation services. An attorney will work with you personally to review your financial information, administer a means test and prepare your paperwork. An attorney will also be present at your bankruptcy hearing to ensure that you follow regulations as you introduce information and proceed through the steps of the bankruptcy process. Whether you use an attorney or file online, you’ll need to appear in court to complete the process. Any failure to appear or missing information can put your case at risk of being thrown out, which is why careful planning is so important.
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By Dennis Hartman, eHow Contributor updated February 17, 2011
Read more: Filing for Bankruptcy Online | eHow.com
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