Bankruptcy is not a process that should be rushed. The decision to file for bankruptcy is a tough one, one that requires much attention to detail and consideration. Before you file for bankruptcy make sure you have completed these steps to ensure you are on the right track for managing your debts.
Talk To An Attorney
While some people may be able to successfully complete the bankruptcy process alone, it isn’t always the best idea. Even if you don’t plan to hire an attorney for the duration of your case it is wise to seek a consultation with a bankruptcy attorney prior to your case. The reason is that they are best suited for helping you evaluate whether bankruptcy is the best for your situation. You may not be a good candidate for bankruptcy or find that there are other ways you can effectively resolve your debts.
Review Your Finances
Prior to filing for bankruptcy it is important that you review your financial history. Because you will be required to provide detailed information about your debts and assets to the court, knowing the specifics of your case can reduce the chances of making a mistake. Further, there are rules about certain financial transactions prior to filing. In general, you want to make sure that your debts qualify for discharge and that you have not made one of several crucial mistakes. Accumulating more debts, boosting your income or eliminating assets prior to bankruptcy can be detrimental to your case.
Decide Which Case To File
Not everyone qualifies for bankruptcy protection, especially under Chapter 7. It is important that you know the likelihood of qualifying and obtaining a debt discharge before you file for a particular type of bankruptcy. You also want to know whether any of your assets are at risk or what may be expected of you during the process. Your bankruptcy attorney can help you review which type of bankruptcy suits your situation.