If you are a person who has fallen into a difficult financial situation then you may want to look for ways on how to file a bankruptcy. In such a case, hiring a bankruptcy lawyer seems to be the best option as you may not be familiar with the complex bankruptcy laws and any small mistake in the process might cost you heavily.
The steps below will give you a basic idea on how to file a bankruptcy:
1) Before filing a bankruptcy, it is wiser to initially look for other options as well. You may reorganize your budget and financial condition with the help of a finance specialist and assess your debts to determine how long it would take to pay off your creditors.
2) After exploring all the options, you may hire good bankruptcy lawyer. Hiring a bankruptcy lawyer is highly recommendable and is the first step of how to file a bankruptcy. The lawyer would work out accordingly to take you out of such a situation.
3) Exploring what type of bankruptcy you fall into may be right for your situation. Chapter 7 and Chapter 13 are the two most common methods that you may file for bankruptcy. Chapter 7 is a straight or liquidation and Chapter 13 includes a repayment plan. Before you could file a Chapter 7 bankruptcy, you have to pass a means test which would determine whether you have the eligibility to file such a bankruptcy.
4) Apart from having an idea of how to file a bankruptcy, it is equally wiser to find out how much it will cost for filing a bankruptcy. The fess for the lawyer varies as some may ask for a flat fee that while some will charge according to the amount that you owe to the creditors. Some lawyers also allow you to pay in installments and may file the case with some deposit.
5) Once your case is filed, the interaction is through your lawyer and your creditors do not hassle you any longer for their money.
Now that you are aware of how to file a bankruptcy, you may go ahead with your plans smoothly saving yourself from trouble and not allowing your creditors to take away all your possessions.