Being prepared to declare bankruptcy involves two distinct areas of consideration. First, you must become aware that your financial condition is not going to become magically better. When you are no longer able to pay your bills and creditors have begun to either threaten or carry out more punitive measures, you should prepare yourself mentally. The other way of getting ready is far easier and involves the below actions.
Speak to an Attorney About Your Financial Situation
Within the American bankruptcy system, there are three common types of bankruptcies that may be declared. These are Chapters 7, 11, and 13. Chapter 7 involves liquidating your assets to satisfy creditors, and Chapter 11 is mostly aimed at businesses and some types of farms. If you are dealing with personal debts and don't want to see your assets liquidated, a Chapter 13 bankruptcy filing is likely to offer the most appealing avenue.
Upon deciding that the financial hole in which you find yourself is too difficult out of which to climb, your next step should be to hire a bankruptcy law firm to represent you. Having legal professionals on your side can ease some of the significant burden that you're likely feeling, and help you to take step toward a brighter financial future. As you deal with bankruptcy proceedings, you should endeavor to learn some lessons from the situation in which you find yourself.