How to Declare Bankruptcy

If you feel like you're buried in credit card debt and other unsecured debt, you may be considering bankruptcy. If you've done any research on bankruptcy at all, you know that it is a very complicated process.

There are some choices that you can make that will help make the process simpler. Taking the time to understand your financial situation will help make bankruptcy a smoother transition.

First of all, you need to know how much you really owe. Make a list of every creditor, their contact information, and the amount you owe. You'll need this to fill out the appropriate paperwork for bankruptcy.

Gather together all of the statements that you have available for your debts. It will help you get a handle on the situation. Then get organized! Keep everything in a portable file box that you can access easily.

Bankruptcy is a federal proceeding. You. ll start the process by filing a petition with the federal bankruptcy court in your area. At this point, when you're really serious about filing, you'll probably want to hire an attorney.

If you choose to hire an attorney, his or her office will walk you through all of the necessary steps. There are many reputable bankruptcy practices in just about every area. Make sure you ask around to get a good referral.

Choose a few attorneys to interview about their services. Make sure that you find an attorney that answers all of your questions and plans to keep you informed at every step of the way.

It's possible to file bankruptcy without hiring an attorney. This will be a less expensive route. However, it will demand that you be very organized and that you educate yourself about the process.

Many people who are at the point of bankruptcy are very overwhelmed with their debt and could use some extra expertise. It may be worth the cost to hire an attorney that is familiar with bankruptcy law and the process of filing.

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About the author:

Michael Torrance is a financial consultant with First American Debt Consolidation and Loans, a company specializing in debt consolidation loan alternatives through consumer credit counseling.