Filing for bankruptcy is one arduous, stressful, and anxiety-inducing process. The decision to do it is already a tough one, though you understand that it is one way that you can protect yourself and remaining assets. This becomes difficult, as you have to know how you will deal with your creditors and prepare for the effects or repercussions of this very action.
Know that there are a lot of things that you need to consider when filing for bankruptcy. These steps are essential, as they will keep you from committing blunders that might hurt or negatively legally affect you.
Nevertheless, below are some things that you need to bear in mind:
Find a reliable and specialist attorney
The first thing that you need to do is find a lawyer that specializes in bankruptcy law. While you might consider getting a generalist lawyer or someone who practices an irrelevant field, such as a wrongful death lawyer, you must understand that a bankruptcy lawyer has the knowledge and experience to help you go through the process. For one, your attorney will help you identify which type of bankruptcy you need to file. This should be easy to do, as your city or state might have a directory of qualified lawyers.
Attend a credit counseling session
The Bankruptcy Code will need you to undergo credit counseling within six months or 180 days before applying for bankruptcy. At this point, the counselor will discuss with you the benefits and drawbacks of bankruptcy. Moreover, they might discuss with you the budget that comes with the filing. Usually, counselors can offer alternative solutions to bankruptcy based on your case. In case you have set your mind, you need to find a counseling organization approved by the U.S. Justice Department.
Deal with the paperwork
About 60 to 70 percent of your time can be devoted to the paperwork required by the bankruptcy filing. The attorney can prepare your petition, but you have to supply the pertinent documentation: almost everything regarding your life’s financial aspects. You might have to submit documents on your income, assets, debts, and household expenses. Tax returns, shopping receipts, or anything that might have to do with finances should be kept.
Discharging of debts and rebuilding your life
In between, you will meet with your creditors. Based on your documentation, petition, and information from your meeting with your creditors, the court should already have enough data to decide your eligibility for bankruptcy. If it is approved, eligible debts will be wiped away or discharged. However, you have to remind yourself that a new chapter awaits you, which is the rebuilding of your credit score.
Be extra careful
In the end, filing for bankruptcy has its sets of pros and cons, and you need to pay attention to each side. You need to be extra careful with your decision, as a wrong move can compromise your entire course of action. At this point, you should know whom to trust. If you feel unsure, you can find more sources online.