- 1). Order a copy of your credit report before proceeding with any bankruptcy so that you have a list of creditors and debt when filing for bankruptcy protection. A credit report includes a list of all creditors and their contact information, as well as the address and phone number of any collection agency trying to collect each debt that has gone to a collections agency.
- 2). Consult with several bankruptcy attorneys for legal advice about which bankruptcy chapter would fit your needs and choose representation that falls within your budget. Since a lost lawsuit is the root cause of filing for bankruptcy protection, an attorney will review the circumstances behind the lawsuit before proceeding. Some judgments for such things as back child support or back taxes cannot be wiped clean through a bankruptcy.
- 3). Fill out all of the bankruptcy schedule forms. These will include identifying documents proving you are who you say you are, income and expense statements, list of creditors, and an itemized list of all possessions owned by you including clothing items. Be certain the information about the lawsuit that you lost, including the name of the court and the court docket number of the lawsuit, are included along with all other debts being sought for forgiveness.
- 4). Attend all court dates for which you are notified to attend as the bankruptcy proceeds. Once notified by the court that your creditors have been sent cease and desist orders prohibiting them from contacting you for collection of the lawsuit debt and all other debts listed, they cannot attempt to collect the debt any longer. Promptly report violations to your bankruptcy attorney, as this may entitle you to counter sue for payment of your legal expenses.
- 5). Make all monthly payments ordered by the court if you filed a Chapter 13 bankruptcy. Failure to do so can cause you to be found in contempt of court, which could result in fines and imprisonment, or a full reversal of the bankruptcy. This would force you to pay the full amount of the original lawsuit amount. If you filed for a Chapter 7 bankruptcy, keep the discharge paperwork for at least seven years. Should anyone attempt to resume collection attempts of the lawsuit amount, a copy of the bankruptcy discharge will have to be sent to halt those collection attempts.
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