Filing Bankruptcy Tips
If you're considering filing for bankruptcy to relieve yourself of debt, you likely have many questions about how to decide whether bankruptcy is best for you.
Or maybe you've decided to file for bankruptcy, but aren't sure how to move forward.
Below are some useful tips to help you navigate the bankruptcy process but be sure to also fill out the below form to connect with a sponsoring bankruptcy lawyer who can answer your questions and give you legal advice.
Don't procrastinate
If you're facing mortgage foreclosure, wage garnishment or other legal collection actions, you probably need to act sooner rather than later.
The longer you put off taking care of your financial obligations, the more problematic they may become.
Bankruptcy's automatic stay was designed to prevent collection actions from creditors.
Act sooner rather than later
Consult with a bankruptcy lawyer before you enter emergency mode – the advice you receive can help you determine whether filing for bankruptcy is the best option for your finances--and you can proceed knowing that you made the most logical choice for you.
Watch out for bankruptcy alternative scams
Although bankruptcy isn't the right choice for everyone, some scams marketed as "bankruptcy alternatives" aren't the right choice for anyone. If you're considering any of the following, think twice:
- Credit Repair: There's no easy way to "fix" credit. Any company that offers to do so is either ripping you off, breaking the law or both. The only way to actually "repair" your credit is to develop healthy credit practices and maintain them over time.
- "Typing Services": Before the new bankruptcy law took effect, these services were more practical for those looking to file for bankruptcy. With all the requirements of the new law, though, filing for bankruptcy is much trickier. If the typing service enters your petition without following all the proper procedures, your case could be rejected – and if you file again, you may not be offered the full protection of the law.
- Debt Consolidation Loans: This usually means a second mortgage on your home, which could mean that instead of having dischargeable, unsecured debt (from credit cards, say), you have secured debt that is non-dischargeable in bankruptcy court. This means that if you fall behind on payments for this loan, your options for getting relief are very limited.
- Debt Settlement:Some debt settlement firms offer legitimate help, but many are designed to take your money and do little else. If you think this may be the best option for you, meet with a bankruptcy lawyer first and ask him or her to recommend a reputable firm.
Talk to a bankruptcy lawyer
Some people are intimidated by the cost of working with a bankruptcy attorney, but filing for bankruptcy requires completing large amounts of paperwork, adhering to tight deadlines, following strict documentation rules and more.
A bankruptcy lawyer can guide you through these procedural requirements and advise you about your case.
Plus, many bankruptcy lawyers will give you a quote so you can get an idea of how much money your case will cost.
Find the right bankruptcy lawyer for you
If you're paying for someone's services, you want to make sure you're getting quality help.
Check out our tips on finding the right lawyer to learn more about choosing someone who will listen to you and dedicate the time and effort to your case that it deserves.
Start the Bankruptcy Process Today
Feel like you're ready to move ahead?
Whether you want someone to help you start the process of filing for bankruptcy or you'd like to talk with a lawyer to get an idea of what your most logical option is, Bankruptcy Central can help by putting you in touch with a sponsoring bankruptcy lawyer practicing near you.
All you have to do is call us at 866-288-7281 or fill out our free online case evaluation form and we'll put you in touch with a sponsoring bankruptcy lawyer.