If you are considering filing for bankruptcy, you are not alone. Nearly 1.5 million Americans file for one kind of bankruptcy or another every year. Most Americans live paycheck to paycheck and do not have enough money in their savings accounts to last six months should an emergency arise. Approximately 93% of all American bankruptcies are personal and more than 50% are caused by medical bills. Here are some tips for what you should do if you are thinking about filing for a bankruptcy. You should talk these over with your legal representative.
Review your finances. Take an honest look at all of your finances. Go through what you have and what debts you owe. You can get a free copy of your credit report from different companies and that will give you a better idea of what your creditors and others see when they look at your credit. This is not a fun process but you will put yourself in a much better position if you know exactly where you stand financially.
Hire a legal representative. This cannot be overstated. They can explain the different kinds of bankruptcies. Whether you are filing a business or personal bankruptcy, there are different options available. The chapter 7 bankruptcy is very different from a chapter 13 bankruptcy, for instance. Also, the rules and regulations that govern the process are long and they change all of the time. Hiring a bankruptcy lawyer will greatly increase your chances of being successful, about 95% of all filings, when done with a legal representative, do succeed. A lawyer can tell you if filing a bankruptcy claim is the best thing for you to do.
Seek out credit counseling sooner than later. Most bankruptcy settlements will require that you receive some sort of counseling in this area. Do this as soon as you can. If you receive a certificate that you finished the required counseling, you will show the judge your seriousness in dealing with your financial issues. Also, if you do not complete this in the time required, you will add more delays to the already long process. If you see problems on the horizon, you can seek out credit counseling early to avoid credit problems.
The decision for whether or not to file a bankruptcy case is a big one. It may, however, be the best way to get out of an unmanageable financial situation. If you are looking into filing for a company, it can often be a way to save the business. Looking into the process should involve at least consulting with lawyers to ensure you pick the right bankruptcy filing for your situation. Remember that all bankruptcy filings are public so just keep that in mind when you file.
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