How to Claim Bankruptcy

At the risk of stating the obvious, claiming bankruptcy is a process not to be taken lightly. Bankruptcy is the last option that should be considered due to the potential negative affect it can have on your credit and financial future. In fact, if you decide to file, the bankruptcy will remain on your credit report for up to 10 years, making it nearly impossible to obtain any reasonable type of credit (as an aside, you are monitoring your credit, right?). Apart from the disastrous effects it can have on your credit, a bankruptcy claim will also cost you a fair amount of money to initiate, particularly if you decide to seek the advice of a qualified attorney. If you think that bankruptcy might be an option for you, it’s important that you know how to claim bankruptcy. The following points can help you on your way:

Seek Legal Advice

Although lawyers are expensive, a qualified attorney can help you immensely when it comes to filing for bankruptcy. They can help you to determine the type of bankruptcy protection that makes the most sense and can also help you to fill out bankruptcy claim forms.

Decide On The Type Of Protection

While Chapter 7 is the most common type of bankruptcy, your individual circumstances may dictate that you file a different type. The type you choose will have an affect on how your debt is repaid and what types of assets will be used in the process.

Secure Financing For The Bankruptcy

You will need to spend around $2,000 for court fees and associated paperwork, so it’s essential that you have your funding together before filing. Of course, the $2,000 doesn’t include the amount you will pay to an attorney if you decide to go that route. Attorney fees will vary, so be sure to shop around for the best rate in relation to the service you expect.

File Your Petition

In order to initiate the bankruptcy process, a petition must be filed with the courts. The process can take up to 6 weeks, so it’s important to get the petition submitted as soon as possible. Of course, nothing should be done until you seek the advice of a bankruptcy attorney.

Bankruptcy is a major financial decision that must be considered carefully. Before jumping into the process, it’s critical that you follow the advice given above. It’s also vital that you seek professional advice through a qualified and well respected bankruptcy attorney.