Are you Looking to Claim Bankruptcy?

At the risk of stating the obvious, bankruptcy filings should be considered very strongly before one simply jumps into the process. Not only can it be confusing and hard to understand, but there are also several consequences that should be well understood prior to initiating a claim. If you are someone that is new to the world of personal bankruptcy protection then you may be confused about where you should even start. If this describes your current situation then pay close attention to the following tips, which should help to create an understanding of this complex and often misunderstood process.

Before even visiting an attorney you should gather all your important documents. This should include all current assets and debts owed to creditors. You will also need proof of all income. Make sure to include all debts, secured and unsecured. Unsecured debt would be things like credit card bills and payday loans. Secured debt would be anything backed by hard assets such as a car loan. Also, you will be required to submit recent tax return filings. You may be able to file for bankruptcy yourself; however, it is wise to hire a bankruptcy attorney. It is often tempting to try to file for bankruptcy yourself to save money, but a good bankruptcy lawyer may be able to help you choose which bankruptcy would benefit you. Also, bankruptcy forms can be quite confusing and tedious. A bankruptcy attorney can be a great asset in helping fill out these forms.

Once the forms are all filled out they need to be submitted to the bankruptcy court. Again, this is where an attorney may come in very handy. The filing fees for bankruptcy will vary depending on whether you file Chapter 13 or Chapter 7 bankruptcy; however, they are usually between $75 and $200. A "stay" is then issued by the bankruptcy court once they have received the filing. Creditors will then be notified that they will not be able to contact you. A bankruptcy can decimate your credit for seven years. During this time it can be very hard to obtain credit, and you will be required to pay much higher interest rates for credit you do receive.

For a more thorough understanding of the bankruptcy process and for an assessment of your current financial situation as it relates to the bankruptcy process, please do yourself a favor and seek the advice of a qualified bankruptcy attorney. They can help you claim bankruptcy and can also review some of the alternatives to bankruptcy that currently exist.

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