What Steps Take Place Before You File For Bankruptcy?

If you are fed up with your finances and debt load and you're ready to take a step towards financial freedom, declaring bankruptcy may be the solution. Bankruptcy offers a way out of debt, and it might be the right option for you. Before you file the bankruptcy papers, you must complete some steps, though. Here are the five main steps you must complete before you submit the documents.

1. You Meet With a Lawyer

Some people handle their bankruptcy cases without lawyers, but this is not usually the best option. Bankruptcy is not only complex, but it is difficult and requires legal counsel. You need a lawyer if you plan to file, so meeting with one should be your first step.

2. The Lawyer Reviews Your Finances

When you hold your meeting with a bankruptcy attorney, the lawyer will focus on doing one main thing. They will review your finances. To ensure that you get the best advice, bring a list of all your assets and debts. The lawyer cannot complete a thorough review of your finances without all the information.

3. The Lawyer Discusses Alternative Options

Before the lawyer offers advice about bankruptcy, they might discuss alternative options. These are other methods you can use for debt relief that do not require filing bankruptcy. Credit counseling is one option, but there are also others. If another option is best for your situation, the lawyer might suggest considering it.

4. You Learn Which Branch Is Best

The next thing the lawyer will do is talk to you about the best branch of bankruptcy for your situation. The answer to this depends on your income, debts, and other factors. While discussing this, you should ask questions and learn as much as possible about the branch the lawyer recommends.

5. You Complete a Credit Counseling Course

The next thing you must do is complete a credit counseling course. In fact, your lawyer cannot file the necessary documents without proof of completion. This course is one of two classes you must take when using bankruptcy. The other one is required after you file the documents. The course teaches many topics related to finances, including alternatives to bankruptcy and how to create an effective budget.

These are the primary steps you must take before filing your bankruptcy documents with the local court. For more information on what you need to do before declaring bankruptcy, talk with a bankruptcy attorney in you area.


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On Your Side During Bankruptcy

Declaring bankruptcy is not easy. Deciding that you have no other way out from underneath your debt and making the call to actually file bankruptcy paperwork is challenging from a mental and emotional perspective. But do you know what can help? Having a good bankruptcy attorney on your side. An attorney can help you navigate the sometimes complex legal jargon associated with bankruptcy filings. They can also help you assess your situation and determine which chapter you should file under. Learn more about bankruptcy attorneys and the guidance they offer on this website. This is a good place to start if your debt is getting unwieldy.




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