Steps to Follow While Filing Bankruptcy

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Steps to Follow While Filing Bankruptcy

Like every debt relief program, bankruptcy too requires a systematic approach. When it comes to filing bankruptcy, there are certain steps that you need to follow if you want to get rid of your overwhelming debts. Here is a brief overview of the steps that you can follow:

Bankruptcy- the last resort :

It is very important to analyze your financial state before you look for a remedy. You need to conduct a critical survey to know if bankruptcy is the only option or you still stand a chance for some other debt relief. It is therefore important that you make sure that bankruptcy is the last option before you opt for something else. Do not take any decision in a rush because that can increase your stress rather than resolve it.

Your financial crisis may be the cause of your troubled thoughts and you may not have a clear idea about your next step. Apart from bankruptcy there can be other options which can resolve your crisis better. Bankruptcy is not an easy solution and it should be opted after serious consideration. Therefore, the best option is to conduct a thorough research before you finally decide on bankruptcy filing.

Professional help- Its importance :

If you have already decided on bankruptcy filing, then the step that should follow is hiring an expert bankruptcy attorney. The attorney being trained and well aware of all the legal procedures can guide you better. The attorney helps you with the filing process, negotiates with the creditors and notifies them regarding harassment activities.

Working with an attorney can be certainly favorable as you do not need to interact with yours creditors. Your attorney will analyze your situation and take care of the filing process on your behalf. They will even look into other alternatives that would be suitable for both the parties. Their involvement with the filing process makes the process hassle free and legally secured.

Type of Bankruptcy suitable to your needs : A particular type of bankruptcy is not suitable for everyone. If you are unable to decide on the type of bankruptcy, look for advice from your attorney. Your bankruptcy attorney can suggest you the type of bankruptcy that would best suit your needs. If your financial condition is bad with no other secondary source of income, Chapter 7 bankruptcy can be a suitable option. If there is other source of income you can try out for Chapter 13 bankruptcy. With Chapter 7 helps you in discharging your debts while with Chapter 13 you can restructure your debts.
Filling out the Bankruptcy Forms :

After you have finalized on the type of bankruptcy, the process that follows is filling out the bankruptcy forms. The process of bankruptcy is complicated and this may require you to fill up and submit a number of forms to the bankruptcy court. While filling up the forms avoid making any mistakes or hiding any information on assets or income. Your honesty about your case can get you a better judgment.

Apart from these basics factors there are other related factors that affect the filing process directly or indirectly. Bankruptcy resolves your debt issues but you need to be careful with the filing process if you want to avoid any undue scams.


About the Author:
This article is contributed by BG, an IAPDA Certified Debt Arbitrator working with Oak View Law Group as well as he advises deliberately on Debt Consolidation Services.
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