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5 Things to Consider Before Filing for Bankruptcy

Before making the decision to file for bankruptcy, take a credit counseling class to see the other options. Often, there are ways to deal with financial issues without having to involve the federal court. Counseling sessions can be had within a day, providing a lot of information most people don’t think of when frustrated about their financial situation

Understand the Legal Side

Avoid Bankrupcy
You can take a few different approaches to filing for bankruptcy, each approach resulting in a different result. One option could allow you to keep most of your belongs while another option would force you to give up all of your possessions. The court process has specific requirements for each type of bankruptcy. Not paying attention to the guidelines can get you into trouble. If you do not play close attention to the guidelines of your type of bankruptcy, you could receive criminal charges for perjury. Before filing for bankruptcy, make sure to do your homework. You can find most information on the Internet for free, and the federal court provides resources as well.

Examine Personal Finances

If you plan to file, make sure you gather all of your documents before filing. You need documents for all of your assets and all of your liabilities. Assets include your home, your car and anything else that has value. Your liabilities include all of your debts . Having all of these documents will help your bankruptcy lawyer create a picture of your finances. The court will also need this documentation to ensure accurate filing, so gather them now to prevent headaches later.

Get Good Legal Representation

Bankruptcy is often an emotional process, which can cloud thinking. If you are planning on filing bankruptcy, make sure you get a good, objective bankruptcy attorney who knows the laws and what is required when filing for bankruptcy. A good attorney can help a person avoid mistakes, helping the bankruptcy process go as smoothly as possible. If you are in Utah, consider looking for a Utah bankruptcy lawyer or a Utah bankruptcy attorney.

Have a Post-Bankruptcy Plan

As you prepare to file for bankruptcy, you should also be thinking about plans for when the process is finished. You need to have a plan for what it will take to climb out of bankruptcy. Once bankruptcy is filed, your credit will be destroyed for a few years, so you should plan on living on your existing income and cash, without the help of credit cards or loans. A little bit of planning now could prevent more stress and headaches later.

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About Melisa Cammack

Melisa Cammack is a freelance writer, mother, and dedicated wife of 13 years. She spent many years as a financial consultant, specializing in credit card debt consolidation, and enjoyed helping many get their lives back in order whether it was their business credit cards, airline credit cards, or student credit cards.