When a person has too many debts, no assets and no way to repay those debts then bankruptcy is an option that can be used to formally sort through a person’s finances and either work out a payment plan that will repay or partially repay the creditors. This is a big step and it requires careful consideration.
It is important that you are familiar with the process of bankruptcy and your responsibilities before you start the process. It is normal to use a lawyer through the process but some people do it themselves. This can work well if you are careful, honest and adhere to the process. If you do not then it can turn into a long drawn out process and may even harm your ability to secure a discharge from bankruptcy.
When looking for a lawyer it can be helpful if any family or friends have a personal recommendation. If not then you can look on the internet for recommendations and try to secure a free initial consultation so that you can get a feel for the lawyer concerned. It is important that you are comfortable with the person you select and that you can communicate with them well.
If you have decided to go ahead then it is important to consult with your lawyer to make certain of the best time to file. Each situation is different and by waiting a short time you may meet some criteria that negate some of the local laws exclusions.
It is a good practice to write down and questions or queries that you have before visiting your lawyer. This saves time and makes certain that you get all the information you need. It will also save money as the less time you spend with your lawyer the lower the bill will be.
When you start the bankruptcy process you will understandably be feeling a lot of pressure and the stress from the financial problem leading up to the bankruptcy. It can be tempting to isolate yourself so that you do not have to deal with questions from your family and friends. This is not the thing to do, you need to engage them because you have taken a step to fix the problems that have financially.
The place to start looking at information about bankruptcies is looking at the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. There are many resources on the net including copies of the laws. If you have questions then you can ask your lawyer to clarify them before you decide on, which type of bankruptcy to apply for.
An import point that you need to understand is that the Judge will be looking for an indication that you have changed or are in the process of changing the behaviors that has led you to becoming bankrupt. A commitment to using money more responsibly and a sign that you understand how you got into trouble with debt will make the process quicker.