Bankruptcy is often a confusing and scary process. It can be very overwhelming to face the prospect of declaring bankruptcy, but there are many things that you can do to make things easier.
Is it easy to file for bankruptcy?
No, but there are things you can do to make it easier and to ensure filing provides as much relief as possible. For example:
1. Get Organized
One of the best things you can do to make filing for bankruptcy easier is to get your finances in order. This means gathering up all of your financial documents, including your income tax returns, bank statements, and credit card statements. You will need to provide this information to your bankruptcy lawyer, so it is important to have it all in one place.
2. Make a List of Your Creditors
Another important thing to do when you are preparing to file for bankruptcy is to make a list of all of your creditors. This includes anyone you owe money to, such as credit card companies, medical providers, and lenders. You will need to provide this information to your lawyer so that they can file the appropriate paperwork to help you get your debt discharged.
3. Be Prepared to Make Difficult Decisions
Filing for bankruptcy is not an easy process and it does require you to make some tough decisions about your finances. You may need to sell off some of your assets to pay off your debts. You may also need to make some changes to your lifestyle to save money and get your finances under control. Even deciding to file for bankruptcy is a among the difficult decisions you’ll need to make.
4. Consult with Financial Professionals
One of the best things you can do when you are preparing to file for bankruptcy is to speak with financial professionals. They can help you understand the process and answer any questions that you may have. They can also provide guidance and support throughout the bankruptcy process, which is crucial when dealing with such a stressful and emotional situation.
For a personalized estimate of what a Chapter 7 would look like for you, feel free to use the calculator below.
5. Take the Process One Day at a Time
Finally, remember to take things one day at a time when you are preparing to file for bankruptcy. Don’t overwhelm yourself with the process and try to take things one step at a time. This will make it much easier to handle and will help you get through the bankruptcy process successfully.
6. Work with a Bankruptcy Attorney
There are many benefits you’ll enjoy by working with a bankruptcy attorney. For example:
Once you file for bankruptcy, an “automatic stay” goes into effect. This means that your creditors must stop all collection efforts, including phone calls, letters, and lawsuits. If they continue to try to collect from you, they can be held in contempt of court. Your attorney makes sure this automatic stay is enforced and that you won’t need to deal with creditor harassment anymore.
Protection from Repossession and Foreclosure
If you are facing repossession or foreclosure, working with a bankruptcy attorney can help you stay in your home or car. A lawyer will help you understand all of your options, including the possibility of keeping some equity in an asset even if it is being repossessed.
Knowledge of Rights
Is it easy to file for bankruptcy? Working with an attorney can make it easier.
Your bankruptcy attorney will explain your rights and ensure that you are protected. They’ll be at your side during the entire process and can even help you get back on track once your bankruptcy is complete.