How Do I File for Bankruptcy in Redding, California?
- 1). Gather all your financial paperwork and total your debts and assets. Any paperwork, such as loan documents, major bills and bank statements, are helpful when your submit your bankruptcy declaration to the court.
- 2). Complete a credit counseling program. Unless you receive a court waiver, individuals are required by federal law to complete a credit counseling program offered by an approved nonprofit agency before they can file for bankruptcy. A list of agencies that are approved for the Redding-Shasta County area is available on the U.S. Department of Justice website.
- 3). Decide which type of bankruptcy to file. The type depends on the circumstance, but the most common for individuals is Chapter 7. This is liquidation bankruptcy, under which you can keep essential property, but non-essential belongings are sold off and the proceeds given to creditors. Another frequently used bankruptcy is Chapter 13, under which the filer undergoes a financial reorganization that's supervised by the bankruptcy court. A means test may determine whether your income level qualifies you to file for Chapter 7 bankruptcy rather than Chapter 13.
- 4). Visit the website or office of the Sacramento Division of the U.S. Bankruptcy Court's Eastern District of California to obtain the paperwork required for the type of bankruptcy you're filing. Complete the required forms, return them to the court and pay the necessary filing fees.
- 5). Attend the hearings the court will schedule regarding your case. During one or more hearings, you may face your creditors to explain your circumstances and financial situation. If the court approves your bankruptcy filing, your case is assigned a trustee, who guides you through the post-declaration part of the bankruptcy process, including liquidating assets and reorganizing debt.
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