The 3 Initial Stages To Take If Strongly Considering Bankruptcy

Before you can actually file for bankruptcy, there are steps you must take. Bankruptcy is not something to take lightly; it is a big event, and that is why taking time to complete the following three initial stages is a good idea if filing for bankruptcy is something you are strongly considering.

Time it right

Timing a bankruptcy case is always an important part of planning for it, and timing often has to do with getting your finances in order for filing for bankruptcy. It also involves planning the right time to file based on your income and windfalls of money you either just received or plan on receiving. The only way to really understand how to time your bankruptcy filing is by talking to a lawyer. A lawyer can help you understand why timing matters and the best ways to time your case appropriately.

Investigate the pros and cons and differences in chapters

A second initial stage of bankruptcy is evaluating the available chapters you could use along with the pros and cons of each. During this stage, you should evaluate Chapter 7 and Chapter 13. As you do this, you will probably find that one chapter appears more beneficial to you than the other, but that does mean that you will qualify for that chapter or that the chapter you prefer is the best option for you. You could learn more about the pros and cons and differences in the chapters by talking to a lawyer. Lawyers are great at explaining these things to people who are in need of debt relief.

Evaluate alternatives

The other initial stage you should complete is evaluating alternative options to bankruptcy. Bankruptcy is a great option for a variety of reasons and situations, but it is not the only way to get out of debt, and it is not always the best option either. There is an alternative called credit counseling that might be right for you, or you could look into debt settlement. Both of these are alternatives that can offer a way out of debt without using bankruptcy; however, bankruptcy might be the best option for you.

Find out if you qualify for it

After completing the first three steps, you should consider meeting with a bankruptcy lawyer to find out if you qualify for bankruptcy and what branch you qualify for or should use. This is the best way to learn more about your options for finding relief from debt.