4 Tips to Successfully File for Bankruptcy

November 26, 2013

Due to the recent economic crisis many people are losing their jobs and their homes. Not to mention the fact that they’re accumulating a lot of debt. Sooner or later this debt is going to catch up to them and then there’s going to be hell to pay. If you are one such individual you better come up with a plan soon. If nothing else works you can file for bankruptcy. However, this is not an easy process. In order to simplify it, we have provided a few tips that should help you along the way.

Credit Counseling

It is mandatory by law to undergo credit counseling before filing for bankruptcy. Hire a government approved counselor and use his expertise to get your finances in order. He can help you manage your debts and set up a payment plan. If his efforts work, you won’t have to file for bankruptcy after all. And if it doesn’t, then you’ll have a legitimate excuse before the court that you tried and failed. However, credit counseling is still the first step before filing for bankruptcy. Sooner or later you’re going to have to go through it.

Do Your Research

If filing for bankruptcy is the only option on the horizon, you should at least learn more about it. There are different types of bankruptcy depending on your country’s laws. The two types of bankruptcy you can file in the United States are Chapter 7 and Chapter 13. Chapter 7 can dissolve most of your debts, while Chapter 13 gives you enough time to come up with a repayment plan. Unless you’re in a truly dire condition, you’ll have to file for Chapter 13. Doing your research well can also familiarize you with the costs associated with the process, such as lawyer fees and court fees.

Hire a Specialized Lawyer

If you want your filing process to go smoothly, you’ll need the help of an expert. Hire a bankruptcy attorney who has years of experience resolving cases such as yours. If you put your life in the hands of an amateur, you’re going to suffer for it. Once the filing process is initiated, your lawyer will be the link between you and your creditors. All communication should go through him. Once lawyers are involved, you best let them handle the proceedings from there on.

The Aftermath

Once you’ve successfully filed for bankruptcy, it’s important to have a fresh start. Try to find a job and keep your finances in order. Bankruptcy is a get out of jail free card that can only be used once in a lifetime. Avoid debts at all costs and try to save as much money as you can. You’ll need to tread lightly from here on out and avoid big expenditures. You’ve been given a second chance and it’s important that you use it wisely.

We hope the tips mentioned here have simplified the process of bankruptcy to some extent. Nothing can substitute a professional and we suggest you consult one before making any decisions.

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The author of this article, Richard King, is an intern at Goldbach Law Group, a reputed law firm providing affordable bankruptcy in Whittier. Richard takes keen interest in American law and likes to read and blog about financial issues concerning businesses.

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