Filing for bankruptcy is not something you should just rush right into, as it is a big event to go through, but it can be a great solution for many people. If this is something you are thinking about doing, there are three things you will need to do before you file your paperwork for bankruptcy.
1. Look into alternative options for debt-relief
When you are considering bankruptcy, it is likely because you have major amounts of debt and you do not know how to get out of the debt you have. If this is the case, you should know that there are other ways to get out of debt other than bankruptcy; however, bankruptcy might be the best choice. You will never know, though, unless you look into alternative options for bankruptcy. When you view other options, compare them with bankruptcy to see the differences in the effects, the consequences, and the time-frames each option will take. This will help you make the right choice for finding relief from your debt.
2. Meet with a lawyer to evaluate your situation
Secondly, you should schedule a consultation with a lawyer to find out if bankruptcy is right for you and whether you qualify for Chapter 7 or not. To find out these details, you will need to bring lists of all your income, debts, and assets with you to the appointment. The lawyer will need this information in order to give you the answers you need.
3. Complete a credit counseling course
After completing the first two steps and making the decision to go through with Chapter 7 bankruptcy, you will need to complete one more step before you can file the documents. This step involves taking a credit counseling course, and your lawyer will give you the information you need to do this. You will likely be able to take the course online, and a certificate will be mailed to you and your lawyer after you complete the course.
You cannot file for bankruptcy without completing this step, and it is actually a very helpful step for most people, as the course will teach you a lot about money management, budgeting, and ways to avoid financial problems.
Completing these three things is a necessity when planning to file for bankruptcy. If you are interested in learning more about how Chapter 7 bankruptcy could help your financial situation, talk to a bankruptcy attorney today.