Bankruptcy is an option that can help relieve you of debt. You may be in a position where you can no longer pay back debt due to a change in your life such as divorce, job loss, medical costs and other reasons. Do not wait until the last minute to file; many times, people try to hang on and their financial situation becomes more difficult. Once you have decided that you can no longer meet your obligations, it is time to visit a bankruptcy attorney and discuss your options.
You are not required to hire a bankruptcy attorney, but it can be a time-consuming, confusing process, and it is best to have someone who is experienced and knowledgeable on your side. When you visit your lawyer, there are several things that you will discuss including your current situation, your creditors, whether filing Chapter 7, 11 or 13 best suits your situation, and more. Your attorney will spend time answering your questions, and there will be paperwork that needs to be filled out. Your first visit is usually for exploratory purposes, and after your bankruptcy attorney has all the facts time may be needed to evaluate for the best course of action.
Once you have gathered all your information and you have decided what filing type is best suited to your situation, your attorney will begin to work on your Petition and Schedules which is paperwork summarizing your financial situation and your creditor information. This paperwork is very important, and mistakes can cause your further difficulties. Your bankruptcy attorney will also make sure that the Petition and Schedules is accompanied by supporting documentation.
After all your paperwork is completed, your bankruptcy attorney will file for a bankruptcy case with the court. You will be assigned a hearing where a bankruptcy official will review all of the material, and a decision will be made concerning your discharge unless they find that more information is needed or you do not qualify. Of course, having an experienced bankruptcy attorney increases the odds of a favorable outcome as they have already evaluated your case and they are familiar with the documentation that will be required.
Filing for bankruptcy can out you in a better position to manage your finances and be able to regain some stability to a life that may have been spinning out of control. If you think that filing for bankruptcy may help your situation, make an appointment with a knowledgeable bankruptcy attorney and go over options.