Bankruptcy should be considered an absolute last resort and never just a way to clear your debts. Knowing how to claim bankruptcy is the first step to finding out if this is the solution for you. Moving on with your life following bankruptcy can also be difficult so here we look at how you can claim bankruptcy and also move on into a healthier financial situation.
Firstly and most importantly speak with a professional such as a bankruptcy services lawyer. They should ensure that declaring yourself bankrupt is the best option for your specific financial situation. He or she will talk to you and help you understand bankruptcy better. This type of a lawyer can name the different types of bankruptcy you can file for. If there are alternatives to bankruptcy that could work for you a legal expert will be able to point you in the right direction to get the right assistance.
Deciding which form of bankruptcy to file for can be difficult and this is something you’ll discuss with your lawyer. To your first consultation bring with you all the financial documents, bills, statements etc that you hold for them to review. Based on your financial situation and your income they will guide you to either file for Chapter 7 bankruptcy or Chapter 13 bankruptcy. These are the most common forms of bankruptcy for individuals. Chapter 7 is a liquidation of all your assets and essentially provides you with a clean slate. Chapter 13 is often considered a better option in the long term although requires a lot of work and help from the experts. It is essentially a specially designed and negotiated repayment plan of your debts.
As your lawyer knows how to claim bankruptcy make sure you listen to their advice. They will organize a series of meetings with your creditors and give you advice on what your role will be during these meetings and other consultations. Your lawyer will handle any objections from creditors and ensure your documentation, necessary filing fees and obligations are met within strictly enforced time frames.
As well as having your financial situation on the way to improvement, now is the time to consider what changes you are going to make to avoid falling into this trap again in the future. Financial counseling is an option to discover any underlying reasons for your situation. This can also help you to deal with the sometimes negative stigma or discrimination people say follows bankruptcy. Budgeting services and financial planning tactics and advice is often available at low or no cost. This is something that must be taken advantage of to ensure your life and finances can move forward after bankruptcy.
You don’t have to be a financial expert to know how to claim bankruptcy but you do need to know where to go for help. Putting your trust in someone else with regards to your finances can be difficult but going it alone is almost certainly harder. For the sake of your finances, mind, health and future get help and advice. Even better, get that help and advice early, as soon as you experience serious difficulty. This may be what helps you to avoid bankruptcy altogether.