If you are unable to pay your obligations, claiming bankruptcy is an option that you should carefully consider. The decision to start a bankruptcy is not one that should be taken lightly. You should carefully consider all options that you might have with your creditors. Only as a last resort should you file. Bankruptcy filings can only be undertaken every 7 years. Be careful to determine that your current situation warrants this kind of action.
Here are some preliminary steps to your bankruptcy filing:
1. Interview at least two competent bankruptcy attorneys before deciding to hire a lawyer, or undertake the filing on your own.
2. If you hire an attorney, direct ALL creditors to your lawyer’s office after he/she has been hired. Then they will be able to speak for you (which mean no more calls). After your lawyer has filed your case then no debt collector can contact you.
3. If you are planning on filing your bankruptcy case then DONT USE YOUR CREDIT CARDS! It can work against you massively on your case
4. If you are doing chapter 7 cases then your trustee will be able to determine if your assets can be liquidated and used to repay your creditors. In the case of a chapter 13 you will be required to enter a 3 to 5 year plan where you will pay your creditors over time.
5. The sixtieth day after your meeting with the creditors is going to be the first set in the deadline for the creditors to file their lawsuits. If no lawsuits are filed shortly after the sixtieth day then you should receive some form of a notification discharging your debt if you decided to file a chapter 7. A discharge means you don’t have to pay off your debt. If you decided to file a chapter 13 case you will have the notice within 30 to 60 days after the last payment has been made and the trustee makes sure your payment plan has been followed and completed. However not all debt is discharged in a chapter 7 or 13. This includes student loans and also taxes. So you still might not be relieved of the obligation to repay all your debt.
For more information visit on Claiming Bankruptcy Organization.