Although circumstances leading to bankruptcy may not be positive, life following bankruptcy can be. The main purpose is to give yourself a fresh, new start in life. Completing the bankruptcy process properly can lead to a new financial future.
Make sure you"ve exhausted all other options prior to declaring bankruptcy. You have better options. For example, you could try credit counseling. Bankruptcy is a serious negative on your credit history so make sure you have no other options before you file. It is important to keep your credit history as positive as possible.
When you realize that you probably will file for bankruptcy, do not pay your creditors or try to avoid bankruptcy by spending all of your regular or retirement savings. Leave your retirement accounts untouched unless there is absolutely no other alternative. You may have withdraw from your savings every now and then, but try to leave yourself some financial security for the future.
Research what assets are exempt from seizure before you decide to declare bankruptcy. The Bankruptcy Code provides a list of all the different kinds of assets that you can exclude. It is vital that you completely understand which assets are protected and which assets can be seized prior to filing bankruptcy. While it might not be possible to protect a particularly beloved possession, at least you will know in advance whether or not you risk losing it.
Avoid paying for a consultation with the bankruptcy attorney, but do ask many questions. It is a good idea to consult several attorney before deciding on one. Make a choice only if you have received good answers to all the questions and concerns you brought to the table. There is no need to offer an immediate hire, so take your time. You have lots of time for consulting with other lawyers.
Again, it is likely that whatever precipitated a bankruptcy filing was not something on which you look back fondly. However, once this chapter is written it is done and you can begin to start fresh. Actually, by using the advice you"ve learned here, your story of hardship could have a happy ending after all!