Using Bankruptcy To Get A New Financial Start

Without the option of filing for bankruptcy, a person could find themselves with no options for escaping debts that they may be unable to pay. Utilizing the process of filing for bankruptcy is an option that may sound extreme, but it is one of the only options for being able to give yourself a fresh start with your finances.

Start The Process Consulting With A Bankruptcy Attorney

As with other legal issues and disputes, there are a lot of nuances to bankruptcy, and this can make it difficult for individuals to be able to make prudent financial decisions during this process. For example, there are many different types of bankruptcy filings that can be pursued, and choosing the wrong one could prove to be more expensive or drastic than is needed. Starting the bankruptcy filing process by consulting with an attorney will be useful for providing guidance as to the type of bankruptcy filing you should pursue and the next steps that you should take.

Identify All Of The Debts That You Currently Have

It is vital to include all of your debts in the bankruptcy filing. Failing to do this will lead to you being unable to include them in the filing, and this will prevent them from being handled by this type of legal protection. While this may require thoroughly consulting and reviewing your credit report, it can be one of the most important steps that you take as you prepare for this process. There will be some debts that will be unable to be included in the bankruptcy filing, such as back taxes, but it is still important to find all of these debts as your attorney will be able to determine what can be included in the filing.

Create A Post-Bankruptcy Plan For Your Finances

Bankruptcy can have long-lasting effects, but it is the most effective solution for restoring yourself to a sustainable financial footing. To avoid finding yourself in this situation int he future, it is important to make sure that you actively plan for your post-bankruptcy future. Without taking the steps to create this plan, you could quickly find yourself struggling with debts soon after the bankruptcy proceedings conclude, but you will be prevented from seeking this protection for up to ten years after being granted it. This will include creating a budget, prioritizing spending, and making an effort to save. Individuals that are going through the bankruptcy process will often find that attending a credit counseling or financial literacy course can help them with making smarter financial decisions as they move forward from their bankruptcy proceedings.

Talk to a bankruptcy attorney to learn more.