Money & Shopping

6 Steps to Qualifying for Bankruptcy

Karen Donovan

If you just don’t have the cash to pay your bills for many reasons, you may need to file for bankruptcy. Doing so may allow you to get rid of the many debts that you only can’t pay. However, keep in mind that all your obligations will be discharged.

However, many things will be removed from your debt bill, and this can be helpful. It’s essential to do all you can to qualify for this status once you go to the trouble of starting the process. There are certain activities that can drastically increase the possibility of having success.

Here are six steps to qualifying for bankruptcy:

1. Filling out the application

The first task on your to-do list is to get the form completed and ready to give the court in your area. It’s important to take the right amount of time in doing this if you wish to have optimal results.

For instance, you’ll want to make sure you have all the personal information entered correctly. Be sure to double check this over and over to avoid making an error.

2. Work with an attorney

Taking the time to find a lawyer in your area can be extremely helpful for completing this process. This legal professional will know the right things to advise you of during this process.

Keep in mind there is a great deal of paperwork that will need to be completed. You’ll want to work with an attorney in your area to know the right things to do.

3. Be honest

When completing all of the forms and information for the bankruptcy process, you may be a bit overwhelmed. This is a lot of things that must be done, and you’ll want to be honest.

Never list more debt than you have and never decrease the amount of your income. If you wish to obtain the status of filing for bankruptcy, you’ll want always to be honest.

Of course, lying is a fraud and could land you in a great deal of trouble if you try to lie.

4. Notify your creditors

It’s important to let your creditors know that you are filing for the status of bankruptcy. This is the courteous thing to do and may allow you to be freed from annoying phone calls.

It’s the law that others can’t contact you if you owe money to these people once you’ve filed for this status. You may be in a hurry to let your creditors know this when you’re in a dire financial situation.

5. Decide on the right type

You’ll want to keep in mind there are varying types of bankruptcies for you to consider. If you are a business owner, you will file for a different variety than that of others.

However, if this is personal bankruptcy, it’s highly likely that you may opt for filing a Chapter 7 bankruptcy. Doing this could be the key to helping you get the debt relief you need.

6. Know the costs

You will have to pay a fee for filing for bankruptcy, and this will depend on the type you choose to submit.  Keep in mind if you do hire an attorney, this will be an additional cost for you.

Fortunately, you can call your local courthouse to see what this price will be or your lawyer may be able to help you quickly.

Filing for bankruptcy is an ideal way to get some financial relief in your life.  You’ll be glad you did when you have many of the debts you can’t pay discharged!