The Correct Way to Declare Bankruptcy

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Most of us face some of the other rough time in our lives when a pile of creditors are always at our doors or making phone calls. In such times bankruptcy seems like a perfect way that can provide a easy and quick process to get you into a situation of life that is worry-free. Well, this might be an option but the idea seems much simpler than the actuality. However, if the situation is truly dire and you have tried all of the possibilities such as financial counseling, working hard etc. then you may have no other way but to go for this option. But before whimsically choosing Chapter 7, 11, 12 or 13 prepare yourself thoroughly so that you are able to avoid all the pitfalls in the process.
To declare bankruptcy is very easy but if you do not do it the proper way, you may get denied. This is because of the pertaining scenario of strict laws and regulations that have been made to prohibit any misuse of bankruptcy laws. You can go for pre-bankruptcy consultation and understand what likely you’ll have to go through along with all other possibilities. You may also inquire what changes will be reflected in case you exceed certain income levels.

In case you filing gets approved, go for credit counseling. The most important fact about declaring bankruptcy is that, regardless of the outcome of the whole procedure, a clean state can never be reached. Filing bankruptcy also may put you in an embarrassing situation as other people will definitely know about it. Since filing bankruptcy takes place inside court, the case has the procedure of being made public and an announcement being done in the newspaper.

Get factual and real about the finances you have. Never hide your money. This is important as declaration of bankruptcy may include a procedure of inventory of all your belongings. It is a good practice to list all the assets and debts in bankruptcy proceedings including bonds, stocks, car, house, credit card debt, child support, student loan, medical bills etc. Taking stocks report before filing bankruptcy also helps in settling with some creditors who may settle for less. This may prove advantageous for you.

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Debbie Joneta also writes about Bankruptcy and Credit issues including File Personal Bankruptcy and Filing Bankruptcy Online

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  1. World Spinner Says:

    The Correct Way to Declare Bankruptcy | FinanceMoz.com…

    Here at World Spinner we are debating the same thing……

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