Some Good Basic Bankruptcy Information:

We'll assume you are seriously considering bankruptcy. Before looking for an attorney, have you checked into the organizations that help people get out of debt? If you've looked at several and they tell you there is no other way, then you need to get your paperwork lined up before talking to an attorney.

First of all, get all your bills and start making a list of names of your creditors, addresses, telephone numbers., etc. If the original creditor sold your paper (loan) to another company and that's who you have been making payments to, then you need to make a note in case something comes up and you need to contact the original creditor. Beside each creditor list how much you own them. Start getting together recent bank statements and paycheck stubs. If you own any property, jewelry, stocks, savings, automobiles, home, etc. make a list and show how much you owe, if any. If it is paid off you must list it as an asset and what you think the present value is. One of the first questions an attorney will ask is "How much do you owe" so keep the list handy.

If you own your home get all your mortgage, tax and any other paperwork you have involving the home. You will need a statement showing how much you owe on your home.

There will be a lot of paperwork to fill out and go over with your attorney. It will make things less stressful for you if you have everything ready. They will use the list you give them and send out letters to your creditors basically telling them to back-off. If you have a home and it is going into foreclosure, the bankruptcy attorney may be able to stop it for a period of time.

You will get a court date and go in and face your creditors. You will be asked questions by the Bankruptcy Trustee and you must answer truthfully. If there is anything you can do to prevent going through this process you really should. It is extremely stressful, embarrassing and humiliating. That being said, when you have no recourse but to take bankruptcy afterward you will feel as though the weight of the world has been taken off your shoulders.

Soon you will want to begin building your credit again. It can be done and as long as you keep good control of your debt you will be fine. Some people unfortunately feel such a sense of freedom they feel they can begin buying everything they want - bad move!

Who To Talk To:

If you feel comfortable talking to people who you know have taken bankruptcy as them about their attorney. If not, make an appointment with someone you think might be good. Check to make sure the first visit if free. If you don't like their demeanor, check out someone else. You pick an attorney who you think is somewhat considerate of your dilemma and makes you feel like they can get the job done. This is why it is so important to get all your paperwork ready beforehand. Everything will go smoothly when you have all your creditors lined-up and assets listed for the attorney to look over.  Ask about the fees you will be responsible for paying.

The information listed above is general in nature and in no way represents everything you will need to do in a bankruptcy. Your attorney should be the final authority on what needs to be done and how it will be accomplished.

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