If you need to know how to declare yourself bankrupt then chances are you are feeling more than just a small pinch in this economy. Don’t feel like you’re alone. Don’t expect it to be a simple process either. There are a lot of elements to filing bankruptcy including costs, paperwork, classes and months of waiting. Read below to learn more about how to declare yourself bankrupt.

The first thing you are going to have to do is gather together every debt that you have. Then you need to find a lawyer you can afford. Even if you think you know how to declare yourself bankrupt without the use of a lawyer, it’s best to get one to make sure all the bases are covered. Otherwise you could end up spending a lot of time and money only to have the judge deny your request.

When you’re learning how to declare yourself bankrupt, there will be a few surprises along the way. The bankruptcy laws have changed. You are now required to learn more about how to properly handle your credit before filing bankruptcy. This is the courts way of knowing that while you know how to declare yourself bankrupt, you also now know how to properly handle your debts.

When filing Chapter 7 you will need a Credit Counseling Briefing Certificate. Chapter 7 is primarily for those who are throwing in the towel so to speak. They know they cannot repay their debts and they have no assets to lose. When their bankruptcy is discharged (which means the process is over with) they will be done with their debts.

When filing Chapter 13 you will also need a Credit counseling Briefing Certificate. However, Chapter 13 also requires you to take a Debtor Education Course. Chapter 13 is for those who do have assets to lose and who do not wish to lose them. These debtors will be required to pay back their lenders using a plan they came up with and presented to the judge.

As your lawyer is helping you learn how to declare yourself bankrupt you will find out that you also need to prove that your income is below your state’s median income.  What this basically means is that you are in a low income bracket compared with others in your state. You may also need to prove that extreme circumstances have put you in the situation. Some of those circumstances may be a divorce or death of the primary breadwinner in your home, loss of a job, a disability that prevents you from earning enough wages to be able to pay back your debtors and more debt that you have the means to pay for.

Though the bankruptcy laws have changed enough that learning how to declare yourself bankrupt is now a more detailed and strenuous process, it is still possible and it is still expensive. That’s why you need to make sure you have a lawyer who can walk you through the process so you don’t waste your already limited funds.