Only file for bankruptcy if your credit card and other dischargeable debt exceeds the value of your nonexempt assets (e.g., cash, bank accounts, tax refunds, etc.) by at least two thousand dollars, because with a bit of attorney help, a settlement could be worked out with the credit card companies. Chapter 7 is the best option if you want to discharge debt whereas Chapter 13 is to be considered if you are considering working out payment plans. The Chapter 7 filing fee is$299.00.
Seek legal counsel because you will need to do some negative estate planning so that the trustee does not take assets such as cash, security deposits owed, unnecessarily and so that you include all potential debt. For example, if you know you have a security deposit coming back to you, then wait until you get it and likewise, with future medical bills coming – they should be included as if you file too early, they will not be discharged.
One of the things you will need to do is itemize the names, address, telephone numbers and account numbers, and amount of the debts. This will also need to be done with your assets. Any attorney you will consult with will need this information. Furthermore, you will have to complete a petition which will require this information.
Get organized to start!