Tips Before Filing Bankruptcy

In order to determine if bankruptcy is really the best choice for you particular financial situation, you must consider certain factors. It is advantageous to fully investigate all of your options by doing your homework. Here are a few steps to take to do just that:

1. Understand the disadvantages and advantages of bankruptcy

It is essential that you know and comprehend each form of bankruptcy, including both Chapter 7 and Chapter 13. There are distinct advantages to both, yet there are also some areas that may concern you with each as well. While Chapter 7 discharges a good portion of your debt, it is not available to all individuals and you must first pass a means test. Chapter 13 is perfect for people wishing for some help with paying off their debts in smaller installments rather than facing a large sum.

2. Perform a budget analysis

This will help you to determine if after filing bankruptcy your finances will be such that you can pay your bills. It will show you whether or not bankruptcy will actually help you in the long run. You do not want to go through all of that hard work only to discover that it was harmful to your financial situation.

3. Look at alternatives

There are plenty of viable options out there to consider including debt negotiation and debt consolidation. You may be able to work out a new agreement with creditors on a different payment plan. A lawyer that is knowledgeable with these alternatives may be able to push you in the right direction.

4. Locate a lawyer proficient in bankruptcy cases

Having a qualified attorney to guide you through the process and determine if bankruptcy is profitable for your situation is absolutely essential. You do not want to risk your future financial standing without consulting with a professional first.

At our firm, you can be sure that with over 33 years of combined experience that you are in good hands. Our founding partner, Attorney Marshall D. Schultz, has helped over 10,000 clients receive positive results in their bankruptcy cases. We can do the same for you!

Please do not hesitate to contact our office today for more information.

Related Posts
  • The Pros and Cons of Declaring Bankruptcy Under Chapter 13 Read More
  • Chapter 13 Bankruptcy Debt Limits Read More
  • What is Chapter 7 Bankruptcy? Read More