The First Steps of the Bankruptcy Process
The first step in the bankruptcy process is to simply assess your financial situation as thoroughly as possible. Go through your finances and determine exactly how much you owe, and to whom, and what it would take to get those debts back on track.
Working through the bankruptcy process can be extremely difficult and stressful for many people, but it is possible to make the situation easier to manage through taking the time to prepare for filing Chapter 7 or Chapter 13 personal bankruptcy before you sit down to do the actual paperwork. Bankruptcy is never going to be a piece of cake, but you can significantly reduce the stress and difficulty of filing by preparing in advance and getting consultation from a bankruptcy professional to ensure that you have all of your documents and other information in order for the inevitable headache that will follow.
Next use one of your free yearly credit reports to determine your credit score and get a glimpse of some of the debts being held against you (be sure to print everything!). Once you have a clear picture of what you are up against it may be worth researching some debt relief options to see if it is possible to avoid bankruptcy, but be warned that many such options have received consumer complaints about being one step above a scam. Research each option thoroughly before settling on one.
If filing a Chapter 7 or Chapter 13 bankruptcy is your only remaining option then it is time to get your financial details in order and seek professional consultation. You may decide not to hire an attorney specializing in bankruptcy, but you should definitely seek out their advice and take advantage of the free hour of consultation that many lawyers offer prospective clients. Make sure to leave absolutely nothing out, no matter how embarrassing or incriminating. Remaining silent on crucial details can have devastating effects in the long run. Only then can you decide how best to proceed, and whether it is in your best interest to file for bankruptcy and if so, which form of bankruptcy is ideal for your unique financial situation.
