Vital Tips For Those Considering Bankruptcy – A Word Of Caution

Business owners and consumers who face mounting debt might think of filing bankruptcy in order to give a fresh new start to their lives. However, both the credit counselors and the bankruptcy experts recommend getting advice before filing this debt relief option. At first, you need to explore some of the opportunities to resolve your debt problems other than options like bankruptcy. Remember that bankruptcy is not for everyone and hence you might fall in trouble by filing bankruptcy if that is not the best option for you.

Check out some bankruptcy tips to take into account –

  1. Assess your finances: Calculate your total income, expenses and debts. Look what is the cause of your financial problem and check the ways in which you can avoid them in the near future. If you don’t have a clear idea of your debts and income, you shouldn’t take resort to such options.
  2. Pull a copy of your credit report: You can visit www.annualcreditreport.com to obtain an appropriate list of all the creditors and their names, to whom you owe money. There are some debtors who think that as debt collectors have stopped contacting them, the debt is no longer on their record or it might have been charged off. But it is not so.
  3. Inform your creditors and debt collectors: According to the bankruptcy law, you require informing all your creditors and debt collectors that you’re about to file bankruptcy. Send them letters or give them calls to let them know that you’re about to take resort to this debt relief option.
  4. Get a credit counseling certificate: Did you know that one of the pre-filing requirements include getting a certificate from a credit counselor about the completion of a counseling session 6 month prior to filing bankruptcy. Hence, if you haven’t completed the counseling sessions, this can be the cause of delays and problems.
  5. Get help of an attorney: Bankruptcy is a legal process with many intricate details which you might not understand. If you wish to complete the process in a proper manner without faltering, it is better to seek help of a bankruptcy attorney. Make sure he is trustworthy and has your best interest in mind.

Hence, if you’re about to file bankruptcy, consider the above mentioned tips for bankruptcy in order to start afresh and get back on the right financial track.

Know more about bankruptcy related tips here.

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