Bankruptcy is a hard decision, but sometimes a necessary one. You should only enter into bankruptcy if you possess a great deal of knowledge and understanding of the process that is to come. Continue on for some helpful information from people who have dealt with the bankruptcy process themselves.
Make certain that you comprehend everything regarding personal bankruptcy by studying online. The United States Department of Justice and National Association for Consumer Bankruptcy Attorneys provide excellent information. The greater your body of knowledge, the better prepared you will be to make the decision of whether or not to file and to make certain that if you do file, the process is a smooth one.
If you are faced with the choice of filing for bankruptcy or using your emergency fund or retirement accounts to pay creditors, opt to file for bankruptcy. Avoid ever touching retirement funds until you have no other choice. Of course you will have to touch some of your savings to get through all of the hearings, but do not put out any money that you do not have to by law.
Before making your decision to file for bankruptcy, double-check to see if other, less drastic options could make sense. If your debt is relatively low, you may be able to manage it with credit counseling. You may have the ability to negotiate much lower payments, just be sure any debt modifications you agree to are written and that you have a copy.
Find a bankruptcy attorney who offers free consultations, and ask lots of questions. You can meet with a few lawyers before deciding on one. Most lawyers provide a free initial consultation. You should make a final decision only once all of the questions or concerns are sufficiently attended to. It’s isn’t necessary to make a choice right away. You can take as much time as you need to meet with different lawyers.
Always have a plan for your finances. If it’s possible to get some more time to pay your bills, take it. The most important thing here is that you understand that knowledge is power in filing a claim. Start to plan things out on how your future will be.
