When a person is considering filing for bankruptcy, he or she is not only overwhelmed by their financial situation, there is also frustration and a certain level of fear about the unknown and the future. Bankruptcy is not the financial forgiveness many think it is. For example, many debts such as child support are not relieved in bankruptcy court. If you are searching online for “how do I file bankruptcy?” you will be faced with plenty of information. However, there are certain steps that you should take when you believe bankruptcy is your only option.
Bankruptcy can stay on your credit report for ten years. Unfortunately, some business owners and creditors may decide to refuse to do business with you based on your bankruptcy. This is why it is important to take all of these things into consideration when wondering how do I file bankruptcy.
Consider Other Options
Before filing a bankruptcy petition, you should take the time to research other debt relief options including:
- Credit counseling
- Financial coaching
- Loan refinancing
- Loan modification
- Consolidation of credit cards
When you schedule a consultation with a bankruptcy attorney, the attorney will go over all of the options that are available to you and help you decide if filing bankruptcy is the best choice for you.
Know When You Should File
There are cases where bankruptcy is the only feasible choice for a dire financial situation. Once a bankruptcy petition has been filed and the process has begun, you will receive an automatic stay. This is a court order that prevents your creditors from contacting you regarding debts you owe or prevent them from taking your assets. Depending on the type of bankruptcy you file, some or all of your debts may be discharged after your court case.
Get an Attorney
If you truly believe that bankruptcy is the only option for your situation, you should hire an experienced and reputable bankruptcy attorney in your area. An attorney will help you navigate the complicated bankruptcy process and prevent you from taking missteps that could cause your case to be dismissed before it is even heard.
These are the beginning steps that you should take when you want to know how do I file bankruptcy. Your attorney will help you during the rest of the process so you can begin the process of rebuilding your credit.
Contact us today for a free consultation regarding your financial situation and learn whether bankruptcy is the right choice for you.