How to File Bankruptcy in Delaware
Filing for bankruptcy in the state of Delaware can be a difficult process when doing it alone, but with the help of lawyers and online resources, filing can be a little easier. Bankruptcy paperwork begins this process by itemizing any income resource currently available. This paperwork also checks any financial transactions in a two-year time span, all living expenses, any secured debts, any unsecured debts, and all forms of personal property. Personal property includes real estate, possessions, and assets. All tax return information from the past two years needs to be collected along with any car deeds, real estate deeds, titles, and any loan documents. All this information can be collected by an individual or with the aid of an attorney.
Delaware Bankruptcy Filing
After all the proper paperwork has been collected, the property that is to be exempt from seizure will then be determined. These decisions are to be Delaware exemptions-based. A two-page petition is then to be filed, along with all other information and paperwork, to the Delaware district bankruptcy court, which can be done with or without the assistance of an attorney. The forms describe the individual’s financial status and financial transactions and are called the schedules and usually cover a two-year time period. It is very important to include all of the necessary information in regards to financial stability or else the bankruptcy petition can be disputed and later declined. For this reason it is advised to consult an attorney or a paralegal when preparing the necessary information and documents. Some choose to file for bankruptcy alone because they have in the past. But filing for bankruptcy now is more complicated and requires more details due to new bankruptcy laws.
In the state of Delaware there are fees for filing for bankruptcy that are determined by the kind of bankruptcy filed. Chapter Seven bankruptcy is a form that does not require repayment of debts and has a fee of about two hundred seventy-four dollars upon filing. An installment payment plan can be set up to handle this fee. Chapter Thirteen bankruptcy is a form that require repayment of all outstanding debts and has a fee of about one hundred eighty-nine dollars. Neither Chapter Seven nor Chapter Thirteen fees can be waived.
When filing for Chapter Thirteen bankruptcy a repayment plan must be included upon submission. This will determine how much money will be available after all expenses are paid and how the money will be divided among creditors. This repayment plan is subject to tests of good faith, insurance to pay unsecured creditors like in Chapter Seven bankruptcy, and that the repayment will only last three years. In the case of Chapter Thirteen forms an automatic stay is presented that halts any foreclosures upon the completion of filing. Payments must be made to secure this halt and are automatically withdrawn from any wages. This kind of withdrawal will be arranged through an attorney as to how much is to be withdrawn for each interval and when.