3 Tips For The Bankruptcy Process

When you want to be sure that you'll be able to bounce back from financial peril, sometimes bankruptcy is the right option. Filing for bankruptcy can be scary if you have never had to go this route before, which is why you need to learn as much as you can about the process. With this in mind, consider some of these tips below on filing for bankruptcy and touch base with a bankruptcy attorney who can assist you.

Understand your various options for bankruptcy

When it comes to filing for bankruptcy, you will be filing for Chapter 7, Chapter 11, Chapter 12 or Chapter 13. Chapter 7 allows you to essentially wipe the slate clean of all your debt through liquidation. Chapter 11 puts you on a repayment plan to allow you to settle your debts. Chapter 12 is a form of bankruptcy available to farmers and fishermen, while chapter 13 gives you between three and five years to reorganize and settle your debts. Mulling over these options with a bankruptcy attorney will allow you to figure out exactly what to expect, so that you are able to proceed with your best interests in mind.

Know which mistakes to avoid

As you are moving forward with your bankruptcy process, you need to also avoid some potential pitfalls. First and foremost, be sure that you are thorough and honest about all disclosures and when turning in all documents. This is when the help of a bankruptcy attorney will come in handy, as they can help you gather and accurately fill out paperwork. Be sure to come prepared to file income tax returns, and definitely make sure that you do not accrue any new debt during the process. You should also avoid transferring or otherwise moving assets during the bankruptcy process.

Hire a licensed bankruptcy attorney

When you are ready to hire the help of a bankruptcy lawyer, spend some time inside of an actual bankruptcy court proceeding so you can get a feel for how the lawyers operate. This will let you make contact with some of the best attorneys in your area, in order to find an advocate that will guide you through the entire procedure. You can also go to sites that offer information about declaring bankruptcy and attorneys in your area.

Follow these tips to the best of your ability in order to go through the bankruptcy process on your terms.