How to Declare Bankruptcy

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15th Dec 2014

Deciding whether or not you should file bankruptcy is a frightening question, one that many people have to answer for themselves. While there are different regulations based on the state you live in, there are certain things that must be done for every situation by federal law. Follow these steps to make declaring and filing for bankruptcy an easier process for you.


What is it?


Bankruptcy was created to help those people who were honest in their working, but may have fallen on hard times with their finances. This system of federal laws made it easier for these people to get away from their debts that are crushing them. This system is designed to give a new start to your financial future, one that would not have been possible with the cloud of debt.


Educate Yourself


Before you declare bankruptcy, it is important to educate yourself on the laws and methods in place. Since bankruptcy was first established, many of the laws have changed, making the process much more complex. There are classes and counseling you must go through to declare bankruptcy if your income is above a certain amount. Depending on your finances and the type of bankruptcy you file, you may be required to pay back the debt over a period of time.


Take Inventory


Take a good hard look at your finances and prepare what you have to declare bankruptcy. If you don’t take the time to do this, someone else will take over for you. Everything from stocks and bonds to your car, from credit card debt to student loans must be accounted for, both assets and debts. There are some debts that cannot be wiped clean, make sure you are prepared beforehand with all the facts of your finances. Even after this, keep paying your normal bills that you can if possible, declaring bankruptcy will not necessarily mean you can stop payments and keep everything. Never try to hide money in these situations, be honest through the whole process. This will save you a lot of heartache when checks are performed.


Get Help


Declaring bankruptcy is a complex process, one that needs the right legal and financial advice. You don’t need to figure out the process alone, instead using the help of a professional can be just what you need to complete the process in a way which will best protect you. Getting the help you need can help you avoid the “quick fix” plans that will only drag you to further trouble. A trusted attorney will advise you on the best plan for you, directing you through bankruptcy.

If you are in an overwhelming financial situation such as this, Christensen Young Law & Associates can guide you through claiming bankruptcy. Don’t let your debt overwhelm you, find out if declaring bankruptcy is right for you.