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Inflation rates in the world are the cause behind the increase in number of bankruptcy cases filled. Period from 1994 to 2004 had an elevation in the bankruptcy cases. Having decided to get rid of bankruptcy, the next question you have to ask yourself is how to file bankruptcy. Out of many options available, opting to file bankruptcy online may prove to be a better option. Though recommended is to avoid filing bankruptcy online unless no other solution prevails. The after effects when one chooses to file bankruptcy online will reflect on the credit record for a long time. However, you may be forced to file bankruptcy online when there is a dead end.
As the world is becoming a global village, difficult and tiresome tasks have now become very handy and easily within reach of everyone. A new bankruptcy law under BAPCPA last October 17, 2005 as "do it yourself bankruptcy" was made available to the public which means almost same as to file bankruptcy online. It is an easy way out but the qualification it requires makes it difficult to opt for. Filing bankruptcy online is comparatively an easy task. All that one has to do is download all the forms needed to file bankruptcy online. However it may get complicated once you come to the filling part of it, so better hire a lawyer in case one is not confident enough.
When it comes to types of bankruptcy a person can file, one is left with numerous confusing options including filing bankruptcy online. Depending upon the eligibility and the situation that prevails, a person can either opt for chapter 7 or chapter 13 type of bankruptcy. A person is eligible to file chapter 7 bankruptcy online after he passes through a process called mean test and qualifies it. This test makes sure if the person who is willing to file bankruptcy online has enough sources to pay his debts using his current financial situation.
Chapter 7 of bankruptcy code calls for liquidation and it is not a part where one can file bankruptcy online. Property of the debtor will be liquidated and an amount equal to the dept will be generated to pay the creditor. Every property is not eligible for liquidation. They are categorized as exempted and non exempted properties.
To file bankruptcy online, locate and download all the required documents. After making a list of all the creditors one owes money to, make sure that the documents are well in place since it matters a lot when someone opts to file bankruptcy online. File the petition online. One should prepare himself to appear before the court. This meeting is called a 341 creditor meeting which calls upon all the parties to attend in order to remain informed of what is going on.
For crucial steps you need to follow in order to file bankruptcy online, visit the following website:http://www.file-bankruptcy-online.net
