Bankruptcy Tips

Bankruptcy is not a fix all to eliminate debt you accrued from spending frivolously out side of your means. Bankruptcy is a way for over burdened people to get their financial lives back in order and try to move forward with their lives. However, bankruptcy should not be the first place you look for financial help. There many Debt relief agencies that can help you get back on your feet without resorting to bankruptcy. Also, consider contacting your lenders and asking them to modify the terms of you original agreement. You may be able to lower interest rates and monthly payments simply by asking and explaining your situation. If you think that bankruptcy is your only option, here are a few tips to help you get through the process.

  1. Hire an experienced Bankruptcy Law Firm. There are multiple Chapters of bankruptcy, and a bankruptcy attorney can help you decide if you even need to file and if you do, which chapter will serve your needs best. Bankruptcy rules are different in each state, and a local bankruptcy lawyer will be familiar with the laws in your state. If you are considering bankruptcy in Miami, contact local bankruptcy law firms that are familiar with the laws in Florida. While it might be tempting to try to figure it out on your own and save the fees, you should not attempt such an important financial process on your own. Besides the peace of mind, good bankruptcy lawyers can save you money.
  2. Get organized. You will need to provide your lawyer with every bit of financial documentation about everything you own, everything you buy and all of you accounts including savings, investments and retirement accounts. Figure out where everything is early on to save you the headaches later. Filing bankruptcy is a grueling process and you should do everything you can to make it easier on yourself.
  3. Be honest with yourself. Take an honest and objective look at your finances. You may be able to avoid bankruptcy by cutting back on luxuries that seem necessary to you. You may need to make painful choices, such as pulling your children out of expensive day care or private schools. Bankruptcy is by no means an easy fix. Your life will be affected, and so will your credit. After bankruptcy, credit scores fall dramatically. You will find it difficult to borrow money, and you may have a hard time finding a job if you work around large amount of money.
  4. Talk with bankruptcy attorneys if you are facing foreclosure. Many people will tell you that filing for bankruptcy will stop your foreclosure. While that is technically true, there are other aspects involved. It may backfire and you could be forced to follow through with bankruptcy. Do not try to file on your own simply to save your home.