Filing for bankruptcy is a big step in any person’s life. It doesn’t matter how sure you are going into the bankruptcy — because you will still have plenty of questions, and probably some fears too. So it is best to get as much information as you possibly can before you decide to file for bankruptcy.
One of the first things you need to figure out is what type of bankruptcy you are going to file. This is largely decided by whether or not you qualify for certain types of bankruptcy. Chapter 7 and Chapter 13 are two of the most common forms of bankruptcy, and they each have strict rules about income.
Next you will want to know what debts will be forgiven. Again, it depends on which form of bankruptcy you choose. The discharge process is a little different between Chapter 7 and Chapter 13. Certain debts, like student loans, are nearly impossible to discharge without an extreme reason.
You also need to be prepared to show the bankruptcy court all of your financial documents and information. It can get very personal, and you need to be able to handle that.
Even with all of these tips, a bankrupt individual will benefit from having an attorney by his or her side during the process. There will inevitably be questions that come up during the process, and having that legal professional with you makes it much easier.
Source: FindLaw, “Is Bankruptcy a Good Idea for You?,” Accessed June 30, 2017