It sounds like you probably want a Chapter 7 and that you have never filed for bankruptcy before. First you need to be sure that your debts are dischargeable in bankruptcy. Most taxes, domestic support obligations, fines, restitution, and benefit overpayments are not dischargeable. Then you need to determine if your annual income is below the median for your geographical area. That information is on the U.S. Trustee's website. If you are above the median, you should contact a bankruptcy attorney to help you complete the "means test" because you might have to file a Chapter 13 instead of a 7 which involves repaying some of your debts. You will need to provide documentation of your income for the last 6 months and copies of your last filed tax returns, and will need an estimate of your tax refund or liability for 2013. You also need to identify all your creditors and the approximate amounts you owe them. Finally, everyone who files bankruptcy must take credit counseling from an approved provider. The list of approved providers is also on the U.S. Trustee's website. The Oregon Bankruptcy Court's website has lots of information on the process and all the forms you need if you want to try doing it yourself. The average cost varies depending on whom you select to help you. Everyone has to pay a filing fee of $306 and then the fees to help you vary from a few hundred dollars for a document preparer to between $1000 and $2000 for a basic Chapter 7 case filed by a lawyer. A document preparer cannot submit any documents on your behalf or represent you at the meeting of creditors, while a lawyer can do most of the work for you. If you can afford a lawyer it is usually worth the money to have expert help. Otherwise, you may end up paying a lot more money to the bankruptcy court than you expected.
Answered on Jan 28th, 2014 at 4:05 PM