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Using A Bankruptcy Petition Preparer Does Not Mean Your Case Will Be Filed Online
Even though you may be able to work with a bankruptcy petition preparer through an online portal, that doesnât mean youâll be able to file your bankruptcy case online. A petition preparer is any non-lawyer who prepares a bankruptcy petition for you and charges a fee for doing it.
The Bankruptcy Code requires that these bankruptcy petition preparers are heavily regulated. Different courts have different rules limiting the amount a bankruptcy petition preparer can charge. The maximum fees are usually less than $250.00.
Bankruptcy petition preparers may not offer legal advice under any condition. The law restricts these petition preparers to being little more than typists. Youâre still the one that has to submit the paperwork to the court.
If You Do Not Live In England Or Wales
The process to become bankrupt is different if you live in Scotland or Northern Ireland. You cannot apply to become bankrupt in England or Wales.
You might be able to apply if you live anywhere else – talk to a debt adviser.
You must not break the bankruptcy restrictions in England or Wales. These might also apply outside England and Wales – check the laws of the country you live in.
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Take Bankruptcy Course 2
After filing your bankruptcy forms, you will need to complete a Debtor Education Course from an approved credit counseling agency. It can be completed online or by phone and typically takes at least 2 hours and costs between $10 – $50, unless youâre eligible for a waiver.
The purpose of the course is to educate you on making smart financial decisions going forward but does not provide legal advice about the bankruptcy process. Youâll learn how to prepare a budget and avoid incurring debt with high interest rates.
Youâre not eligible to receive your bankruptcy discharge and obtain a fresh start if you donât complete the course and file your certificate of completion from the credit counseling agency with the court.
How To Apply For Bankruptcy
If youre applying to become bankrupt, you must complete an online application and create an online account.
Youll need to provide information about your:
Including any letters, youve received from bailiffs or enforcement agents.
Your application will be reviewed by an official adjudicator who works for the Insolvency Service. Theyll decide if you’ll be made bankrupt.
You usually get a decision within 28 days of submitting your application.
There are many ways to deal with debts and bankruptcy might not be the best solution for you.
You can find out more about how to apply for bankruptcy online on the GOV.UK website
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How Can I Apply For Bankruptcy In Scotland
- Sharon McDougall –
If youre in serious debt with no hope of repaying your unsecured creditors, you dont have to wait for a creditor to take legal action against you. You may be able to take matters into your own hands and apply for sequestration . This also prevents your situation from worsening.
There are two ways you can apply for your own sequestration in Scotland:
- Minimal Asset Process
- Full administration
In both cases an approved money adviser or licensed insolvency practitioner should assess whether or not youre eligible for the process, and help you complete the application form.
When completing the form, youll need detailed information about your finances, and will have to submit documents in support of your application.
After You Declare Bankruptcy
When you declare bankruptcy AFSA appoint an Official Trustee to administer your bankruptcy. If youre applying for voluntary bankruptcy, you may nominate a registered trustee. Once a trustee has been appointed youre then protected from any legal action against you from creditors.
At this stage the trustee may sell your assets and take any income you earn over a certain amount to try to pay off all your debts.
You also have a duty to provide information to your trustee such as:
- changes to your conditions
- other requested documents
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Complete The Bankruptcy Form And Pay The Fee
To apply to go bankrupt you need to fill in an online application. You or someone helping you can fill in the form on the GOV.UK website. You can save and come back to it later if you need to.
You will need to pay a total fee of £680 to apply to go bankrupt. You won’t get this back unless you decide to cancel your application before submitting it.
You can pay the bankruptcy fee online when you fill in the form with a credit or debit card. If you pay online you can pay in instalments. The minimum online payment amount is £5 and can be paid in as many instalments as you need.
You can also pay by cash at a bank. You’ll be told which bank to use when you fill in the form. You cant pay by instalments if you pay in cash.
After Your Bankruptcy Application Is Accepted
Once your application is accepted, it is important to note that:
- your details will appear on our website.
- all your creditors will be sent a report. They can log onto our website to get updates after the first report is sent.
- you should contact your secured creditors and arrange to either:
- keep making payments under the agreement or
- arrange for the secured item to be returned/repossessed. You can then stop making any payments under the agreement. They can claim against you for any unpaid amount.
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How To Apply For Sequestration
The application form for sequestration can be completed and submitted online, which considerably speeds up the process, but if you prefer you can print off or request a paper copy.
A Debtor Bankruptcy Application Pack is available from the Accountant in Bankruptcy website, with the application fee for full administration being £200. If youre eligible for the Minimal Asset Process, the fee is reduced to £90.
Mail Documents To Your Trustee
The Chapter 7 trustee is an official appointed by the court to oversee your case and liquidate, or sell, nonexempt property for the benefit of your creditors. Not all types of bankruptcy require the involvement of a bankruptcy trustee, but both Chapter 7 and Chapter 13 cases have one.
Pay attention to mail you receive from the trustee after filing your case. The trustee will send you a letter asking you to mail them certain financial documents, like tax returns, pay stubs, and bank statements. If you donât send the trustee the requested documents following the instructions provided in their letter, you may not get a discharge of your debts.
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Can I File For Bankruptcy Online
So, now we can get to the question of whether it is possible for Canadians to file for bankruptcy online. The simple answer is no, filing for bankruptcy online cant be done. It is not possible or legal to file for bankruptcy over the internet because you need to meet, in person, with a licensed insolvency trustee for a bankruptcy assessment.
The purpose of this assessment is to have a face to face discussion with a professional about all the aspects of bankruptcy and the laws surrounding it. They want to ensure that you have the most information possible before you make the choice to go bankrupt. Thus, while the internet can provide plenty of knowledge on the subject of bankruptcy, it is not possible to file online.
Also, now that you know filing for bankruptcy online isnt an option, you should be aware of fake organizations, companies, or services that try to trick people into thinking they can file for bankruptcy online. Unfortunately, there are many bankruptcy scam artists out there who say that they can help you file online for a fee. DO NOT believe them under any circumstances. As we said, a bankruptcy filing cannot legally be done online!
To learn about Canadas recent financial scams and how to avoid them, .
Attend A Financial Management Course
The list of approved debt education courses is available at the Department of Justice website. InCharge Debt Solutions is an approved agency with our own online bankruptcy course. The course must be completed within 45 days of meeting with your trustee and creditors.
Lieberman said anyone considering bankruptcy should take the important first step of using an internet search engine to find the bankruptcy court for their area. Each site has a plethora of information for consumers and filers.
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You Can Not Access Step 2 Until You Provide This Information
Step 1:Start Your Questionnaire
Step 2: to log-in with your User Name and Password.
Who Deals With Your Bankruptcy
An Official Receiver is appointed to protect your assets. They act as trustee of your bankruptcy affairs if you have no assets.
If you have assets, an Insolvency Practitioner will be appointed to act as trustee and sell your assets to pay your creditors. To read more, go to:
Once a bankruptcy order has been made against you, your creditors cannot pursue you for payment. The trustee is responsible for payments.
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Prepare Your Bankruptcy For Online Filing Now
Welcome to the Doan Law online bankruptcy filing center. This site will prepare your bankruptcy online. An attorney will personally review and finalize your petition as well, if you choose. An office visit is not necessary, but highly recommended. One of Doan Laws attorneys can then file bankruptcy online for immediate protection. Please note that only the attorney can file the final petition online. If you choose not to use the attorney, you will need to manually take the petition to the Bankruptcy Court. Alternatively, skip the online filing and meet with us first for a free consultation.
Ppi And Bankruptcy In England And Wales
If you become bankrupt, any successful claims for the mis-selling of PPI will be paid to your bankruptcy estate, and not to you. Dont make any claims yourself as you could end up being out of pocket if you pay any fees or commission to a claims company.
Find out more on the GOV.UK website
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How Hard Is It To File For Bankruptcy On Your Own
You will at least need an understanding of the legal issues before filing the bankruptcy petition. How hard a case will be will also depend on other factors including :
- The type of bankruptcy
- How complicated your case is
- Your current financial situation
- Whether you have other obligations like student loans, car loans, child support, and alimony
Even though your case is relatively uncomplicated, a bankruptcy case requires you to fill out extensive paperwork and have a good knowledge of the Bankruptcy Code. Thus, it may be in your best interest to at least have an initial consultation with an attorney to make sure you are on the right course.
Types Of Bankruptcy Filings
Chapter 7: Liquidation
Chapter 7 is designed for individuals and businesses experiencing financial difficulty that do not have the ability to pay their existing debts. Under Chapter 7 a trustee takes possession of all of your property. You may claim certain property as exempt under governing law. A bankruptcy trustee then liquidates all non-exempt property and uses the proceeds to pay your creditors according to a distribution scheme required by the Bankruptcy Code.
The main purpose of filing a Chapter 7 case is to obtain a discharge of your existing debts. A bankruptcy discharge is a court order releasing you from liability for many types of debts. If, however, you are found to have committed certain kinds of improper conduct described in the Bankruptcy Code, your discharge may be denied by the court and the purpose for which you filed the bankruptcy petition will be defeated.
Even if you receive a discharge, there are some debts which are not discharged under the law. These include certain types of taxes, student loans, alimony and child support payments, debts fraudulently incurred, debts for willful and malicious injury to a person or property, and debts arising from a drunk driving charge. Generally speaking, a bankruptcy discharge does not remove liens from your property.
Chapter 11: Reorganization
Chapter 11 is designed for the reorganization of a business. It is also available to individual debtors who exceed the thresholds for Chapter 13 bankruptcies.
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You May Make Surplus Income Payments
When you file for bankruptcy, you must do the following:
- disclose to the LIT information about all of your assets and liabilities
- advise the LIT of any property that was sold or transferred in the past few years
- surrender all your credit cards to the LIT
- attend the first meeting of creditors
- attend two counselling sessions
- advise the LIT in writing of any address changes
- if required, attend an examination at the Office of the Superintendent of Bankruptcy and
- assist the LIT as needed in administering your estate.
You may be required to make additional payments to your LIT for distribution to your creditors.
In addition to paying the LIT’s fees, you may be required to make additional payments to your LIT for distribution to your creditors. These are called surplus income payments.
Each month during the bankruptcy process, you must submit a copy of your pay stubs and proof of other income to the LIT. The LIT then calculates your surplus income.
Surplus income is the part of your earnings that exceeds the amount of income a family needs to maintain a reasonable standard of living. This amount is set by the OSB annually. The larger your family, the more you are allowed to keep the more you earn, the more you are required to contribute.
In other words, if your household income exceeds the level set by the OSB, then you must make additional payments to your LIT during your bankruptcy.
How Do I Apply For Bankruptcy
The unfortunate reality of bankruptcy is that it will cost some moneymore if you hire legal help, which you probably should . All filings have to go through U.S. bankruptcy courts, where the cost to file is $335 for Chapter 7 and $310 for Chapter 13. However, you can ask the court to either waive your fee or let you pay with monthly installments. You’ll also have to take debtor education courses if you file on your own.
And that’s just the beginning. There’s a list of documents you’ll need to take care of, as well as the specific repayment proposal you need to submit for Chapter 13. That proposal gets reviewed by a court-appointed trustee, who contacts your creditors before approving your submission. Overall, neither filing is an easy process to handle on your own, and even minor mistakes on your end could be a setback for your case.
So, whether you file for Chapter 7 or Chapter 13 bankruptcy, it’s typically a good idea to hire a lawyer to help you petition. A bankruptcy attorney’s price depends on the nature and complexity of your filing, with Chapter 13 filings on the pricier end, but the price tag doesn’t necessarily mean a lawyer is out of the question for you. Discuss payment plans with potential attorneys, check out local pro-bono lawyers and legal aid offices, or use an online tool like Upsolve to cover your bases when it comes to bankruptcy.
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How To Submit Your Bankruptcy Form
Using the online form which contains additional information to guide you to complete. This will reduce the likelihood of the form being returned to you for missing or incomplete information providing you with more timely relief from unmanageable debts.
If you are completing the form on behalf of someone else or if online lodgement is not an option for you, you can lodge your application offline. To do this, contact us for a Bankruptcy Form and return it via post.