How to File for Bankruptcy

The process of filing for bankruptcy can be extremely difficult if you do not allow yourself time to prepare and research what you will need to do ahead of time and what to expect throughout the process. Certainly, working with a qualified bankruptcy attorney in Memphis, TN, and keeping in mind the following 4 important steps will ensure that your bankruptcy filing go more smoothly.

Look Over Your Finances

Bankruptcy might not be right for you. Then again, it might be the thing that saves your financial situation. Either way, you will never know until you first carefully review your finances to help yourself determine whether you are ready for bankruptcy. If you look at your finances and find that you are budgeting as much as you can and perhaps even cutting costs where it is possible to do so, and you still feel strapped, bankruptcy might be a good option. If you are buried in unsecured debt and see no way out of it in the next few years, it might be time to schedule a consultation with a bankruptcy lawyer.

Meet with an Attorney

Your next step after deciding that bankruptcy might be a good option for you is to schedule an initial consultation with a bankruptcy lawyer. You can go online and find highly rated attorneys in your area. You might also be able to find qualified lawyers by asking a lawyer you are already working with on another matter about who they would recommend. No matter how you find them, ask whether they offer no-cost initial consultations to help you determine if bankruptcy is a good option for you. At this consultation, the lawyer will probably not ask for all of your financial records, but you should have a pretty good idea anyway of what your fiscal circumstances look like.

Discuss Your Options

During your initial consultation, your attorney is going to go over your financial situation with you and determine if bankruptcy is right for you. A good lawyer is not going to push for bankruptcy in 100% of the cases, as there are many times when people who can get through financial trouble without bankruptcy. Look for an attorney who will review all of your options, including all the alternatives to bankruptcy you should be thinking about. For example, you might be able to negotiate with your creditors, adjust your loan terms through a loan modification, or sell your house on a short sale to avoid foreclosure or repossession of your vehicles. In many cases, people think the worst and believe that they need to file bankruptcy when simply cutting costs and lowering expenses will do the trick.

Provide Paperwork

The next step is to provide financial documents to your lawyer.  Some of the financial documents you will need to provide them include your taxes for the past few years, pay stubs for the last 6 months to a year, and any mortgage statements or bank statements you have. There might be more documentation that you need to provide depending on your unique financial situation and how your attorney wishes to approach your filing. Keep in mind as you work with your lawyer through this process that you will need to keep your records updated throughout to ensure the most accurate information when it comes time to file the bankruptcy paperwork.

When you look at a bankruptcy filing as a series of simple steps, it doesn't seem as nerve wracking as many people make it seem. When you approach each step carefully, provide the right information, and hire the best bankruptcy attorney in Memphis, TN, then bankruptcy can be a smooth and seamless process that might significantly improve your life.

Source : articlesbase.com