BANKRUPTCY ASSISTANCE

How to Declare Bankruptcy

It can seem quite simple when you start out thinking about filing bankruptcy, but once you start looking into it you may be wondering just how to file for bankruptcy.  The process is not too difficult actually.  You should start from the beginning, though.  You want to file for bankruptcy when the tie is right and make sure you do everything possible to ensure it is a smooth process.

Check Out Alternatives First

Before you start getting into how to file bankruptcy you need to make sure that you should even be filing bankruptcy.  Check into the alternatives that may work better for you.  You can try some of these first:

- Talk with creditors and set up payment plans.
- Try consolidating debts.
- Get deals on interest rates from creditors to lower debt.
- Consider a loan to pay off debts.
- Sell assets to pay off loans.

You should exhaust all alternatives before you decide to file for bankruptcy.  Once you file bankruptcy you will be into the process and you will need to be sure that is what you want and what will work best for you.

Consider Your Options

You have some options when it comes to how to file for bankruptcy.  Most individuals will file a Chapter 7 or Chapter 13.  A Chapter 7 involves selling assets, if any, to repay debts and then discharging what is not paid through liquidation.  Chapter 13 involves setting up a court sponsored repayment plan.

You should decide what works best for you.  People with a lot of assets who do not want to lose them will often benefit more form a Chapter 13.  Chapter 7 is great for people with little assets or whose assets are exempt.

Choose Representation

You should hire an attorney.  Even if the attorney is not going with you to court you will still need some legal guidance.  If you can not afford an attorney you can usually get help obtaining one through your legal aid. 

You should try to get an attorney that specializes in bankruptcy law.  This will help to ensure they are familiar with bankruptcy proceedings and that their current on all laws.  Working with a bankruptcy attorney makes the whole process easier, too.

Get Prepared

You should make sure you are prepared for the process.  You should find out the costs and all pertinent information when you learn how to file bankruptcy.  This will help to ensure that you are really prepared when it is time to file.