How to File for Bankruptcy in North Dakota
Anyone planning to file for bankruptcy in North Dakota will need to prepare by becoming familiar with the federal rules and requirements regarding the bankruptcy process. It will also be necessary to become familiar with the local guidelines that must be followed when a person files for bankruptcy in the state of North Dakota. One step that is universal in the bankruptcy process involves determining which form of bankruptcy is appropriate. This will be Chapter 7 bankruptcy for most people. Chapter 7 bankruptcy allows for unpaid debts to be discharged if it is determined that a debtor does not possess the means to pay them. Chapter 13 bankruptcy is another popular option. This form of bankruptcy allows a debtor to set up a payment plan for paying off debts through the court. There is also an option called Chapter 12 bankruptcy for fishermen and farmers. Chapter 11 bankruptcy is a form of bankruptcy that certain people may qualify for if they have large debts or business-related debts.
Consulting with a bankruptcy attorney is highly recommended for anyone considering the option to file for bankruptcy in the state of North Dakota. Filing is a very detailed and time-sensitive process that must be done in full compliance with court rules. Any errors made during the filing process could result in delays and penalties. In addition, any attempts made to conceal assets or financial details can result in penalties.
Starting the Bankruptcy Process
The form of bankruptcy that a person will ultimately file for is determined by something called a means test. This test is required by the court. A debtor will need to submit details to the court regarding income, assets, liabilities and many more aspects of their finances. It is very important for anyone who is filing for bankruptcy to submit accurate and complete information when filling out a means test.
Necessary Steps When Filing for Bankruptcy in North Dakota
The bankruptcy process officially begins when a debtor files a formal bankruptcy petition with the court. This petition triggers an automatic stay. An automatic stay officially prevents all creditors from attempting to collect unpaid debts or contacting a debtor for any reason. It is necessary to prepare to file a petition with the court by taking a credit counseling course during the six months leading up to filing for bankruptcy. This course must be taken through a provider that is approved in the state of North Dakota. A full list of approved providers can be accessed here. A debtor is also required to complete a debtor education course during the bankruptcy process. A list of approved providers for this course can be found here. Another key step in the bankruptcy process is attendance at something called a meeting of creditors. This meeting is mandatory for all debtors. While it usually serves as a formality, the purpose of the meeting is to provide creditors with the opportunity to prove that a debtor possesses unsecured assets or to challenge the terms of a payment plan.
The Bankruptcy Process in North Dakota
The United States Bankruptcy Court for the District of North Dakota is located in Fargo. The cost to file a petition for Chapter 7 bankruptcy in North Dakota is $335. The cost to file a petition for Chapter 13 bankruptcy in North Dakota is $310. A full schedule of all of the other fees a debtor can anticipate when filing for any form of bankruptcy in North Dakota can be found here. The forms required when filing for bankruptcy of any form in North Dakota can be accessed here.