The ABC's of Bankruptcy

: Chris Lee Law Firm

  Filed under: Bankruptcy

bankruptcyFiling for bankruptcy is a big decision, one that should not be taken lightly. As a debtor one of the best things you can do for yourself and financial future is get to know the bankruptcy process before diving in head first. The biggest considerations can be boiled down into three simple categories:

Apply Within Reason

Before filing for bankruptcy it is important to understand where you are in debt. While you may feel like you are drowning with no way out, but there may be other ways to resolve your debt outside of bankruptcy. You should always be sure to consider all of your debt relief options before deciding on bankruptcy. Some people find that they are able to negotiate their debts directly with creditors and save the trouble of filing. There are also instances in which you may not qualify for bankruptcy, or the type of bankruptcy you are looking to file. Knowing the qualification standards and whether or not your situation measures up is crucial to the success of a case.

Be Prepared

While you may think that the bankruptcy process is out of your hands, there is actually a lot for you to do in order to file. There are numerous documents that must be completed and filed with the court, along with several other requirements. Having your financial information organized and prepared is helpful when filing for bankruptcy. Knowing what all is expected of you is vital to the outcome of the case. If you fail to complete or file a document accurately, forget to pay the fees or attend a credit counseling course, you may find your case dismissed. Further, your spending habits, payments and dealings with assets prior to bankruptcy should also follow strict rules that could make or break the case.

Contact An Attorney

Not everyone uses, or needs, a bankruptcy attorney when filing. However, there is much to be gained from hiring an experienced bankruptcy attorney. They can review your financial situation to ensure you meet qualification standards prior to filing, as well as determine whether bankruptcy is right for you. In fact, many bankruptcy attorneys also deal in other lines of financial and debt relief assistance. In some cases they may actually advise against bankruptcy if they feel you may be better served elsewhere. If you do decide to file, a bankruptcy attorney can ensure your documents are completed accurately and that you are meeting the expectations of the court.

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