Advice & Information for Those Considering Bankruptcy- Part 1

Every day we are forced to make decisions.  Often, making these decisions is not something we want to do, but rather something we are forced to do.  In the current economy, the decision to declare bankruptcy (chapter 11 bankruptcy) is an unpleasant decision that many Americans have been forced to make.  Though no one wants to declare bankruptcy, in certain circumstances it is the right decision to make and can help get you back on your financial feet.

Bankruptcy is not a decision one makes lightly.  It can have lasting effects and must be made with careful planning and consideration.  Once you have decided to look into bankruptcy as an option, the first step is to do thorough research so you know exactly what to expect in terms of benefits, cost, potential adverse effects, etc.  Fortunately in the information age, there are plenty of resources to help you make an informed decision concerning bankruptcy.

Financial planners can help you decide if filing bankruptcy is the best course of action in your situation.  If they believe you can benefit from bankruptcy, they will also help you analyze you situation and decide the best chapter under which to file.  They will consider your debts, assets, income etc. to help you make a decision as to whether bankruptcy is the right move for you and if so which type.

Once you have a plan, the next step is to consult an attorney.  In some circumstances if you have relatively few assets and your debts are strait forward, you can successfully file for bankruptcy without an attorney.  However, in most cases the attorney will be very helpful if not absolutely necessary.  If you have substantial assets, are filing Chapter 11 bankruptcy or owe sizeable debts to the IRS, a specialized bankruptcy attorney will be essential if you want the best outcome as possible in your proceedings.  Paperwork alone can overwhelm most people and hours will be spent filling out complicated forms.  Attorneys and their assistants do this all the time and can complete paperwork quickly and accurately.

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