A very important part of filing your petition for bankruptcy is finding the right bankruptcy lawyer.  Just as an employer would interview possible job applicants it is important that you interview possible bankruptcy lawyers.  You will want to find a lawyer that either specializes in bankruptcy or devotes a large portion of their practice to bankruptcy cases.  Ask them how many bankruptcy cases they have overseen and whether all of the outcomes were positive as things can and do go wrong in bankruptcy proceedings. 

You will also want to ensure that you are comfortable with your lawyer on a professional level.  The two of you will be spending time together going over sensitive data and a good professional working relationship is key.  Make sure you feel comfortable asking questions of the lawyer and that they answer the question to your liking.  If you aren’t sure what is being discussed or is to happen then ask, that is what they are there for.  Don’t feel the pressure to retain the first lawyer that you interview, if you don’t feel that this is the lawyer for you then thank them for their time and continue on to the next lawyer on your list.

Another important aspect of a bankruptcy lawyer is finding one that is certified for bankruptcy in your state.  Your state’s Bar Association should have that information and may even have a lawyer referral service to help you start your list of lawyers to interview. 

Once you have found the lawyer you like please be sure to get a statement of fees as you’ll want to know how much the preparation, filing, representation, etc is going to cost.  You’ll want to know whether such additional matters as disputes with the trustee and other non-traditional transactions will be covered.

Bankruptcies are filed in a federal court and are under federal jurisdiction even though some laws can vary by state. The bankruptcy laws were rewritten in 2005 so it is imperative that you have the most up-to-date information available. One of the biggest changes in the bankruptcy laws is the requirement for credit counseling. The credit counseling must be approved by an agency approved by the Department of Justice. The main purpose of the counseling is to help you determine if you actually need to file for bankruptcy or if one of the many bankruptcy alternatives would be a better choice for you. In addition to the pre-filing counseling session you will also be required to attend another counseling session upon discharge. The second counseling session helps you learn the finer points of personal financial management including budgeting.

The eligibility rules have also changed to determine who may qualify to file for bankruptcy. The first is to determine if you meet the income requirements to file a chapter 7 bankruptcy. You will determine your average income over the previous six months and compare it with the median income for a family of your size in your state. If your income is less than or equal to the median income then you qualify to file for a chapter 7 bankruptcy. If your income is higher than the median then you must pass the means test.

As with any legal proceeding, there are several different forms that will need to be filled out and submitted when filing your bankruptcy petition.  Filling out the forms may prove difficult and that is where having a bankruptcy attorney comes in handy.  The list is long and there are different forms required to file a petition as well as different procedural forms that may be used throughout the proceedings.  You can view all of the forms on the US Courts website.

When you file bankruptcy you will make a list of all of your assets, including any personal property you have.  The personal property will fall into one of two categories – exempt and non-exempt.  Exemptions vary by state but in general the following types of items are exempt.  Motor vehicles to a certain value (to be determined on a case-by-case basis), reasonable and necessary clothing (fur coats are not usually considered reasonable and necessary), household appliances, reasonable and necessary household furnishings and goods, and jewelry to a certain value (again to be determined on a case-by-case basis).

In addition to the above-listed items, pensions, life insurance policies, part of the equity in your home, tools of your profession, and public benefits (social security, unemployment, etc) may also be exempt.  The following items are generally considered non-exempt and will need to be relinquished during the bankruptcy proceedings:  stamp, coins, and other collections; family heirlooms; cash, stocks, bonds, and other investments; a second vehicle; a second or vacation home.

The important thing to remember with exemptions is that they will vary not only by state but on a case-by-case basis within the same state.  This is when having a very knowledgeable and experienced bankruptcy attorney comes into play.  The better your attorney is the better they will be able to apply the bankruptcy laws to your specific case.

In order to begin your bankruptcy petition you will need to have many types of information readily available and organized in one place. The following checklist will give you a good start as to what you will need when you sit down to fill out the paperwork either by yourself or with the help of a paralegal or bankruptcy attorney.

• Copies of your federal and state tax returns for the past two years
• Copies of your last two paycheck stubs
• Your Social Security number
• List of all the bills you owe, a recent statement from each creditor would be best
• History of residential addresses for the past six years
• Copies of the deed or mortgage papers for any real estate you own
• Appraisals of any property you have including non real-estate items like jewelry, furst, etc
• List of all your bank accounts including a recent statement from each
• Safe deposit box information if you have one
• All insurance policies including homeowners and life
• Information regarding all of your investments including stocks and bonds
• Copies of any leases or other promissory notes from the past three years