When you file for bankruptcy in the US, you have to do so following the bankruptcy law of US. However it is rather difficult for one to make the life changing decision of declaring bankruptcy. The decision lies solely in the hands of the person suffering from a financial problem.
If you are thinking about filing for bankruptcy, you are sure to have friends and family advising you to file for bankruptcy to get your financial problems taken care of. However it is not advisable to always listen to them.
Filing for bankruptcy is something that will affect your life and your credit report as this mark will remain in your credit report for many years. It is up to you to decide if you can afford to, and want to have this bankruptcy mark on your credit report for so many years.
Understand the bankruptcy law thoroughly
To make a wise decision on whether to file for bankruptcy or not, you have to first understand the bankruptcy law. You also have to be aware of the changes and effects bankruptcy will have in your life once you file for it. Declaring bankruptcy, without understanding the meaning of bankruptcy law would be folly on your part.
When you have understood the terms in bankruptcy law, and know how it will affect your life, you have to next examine your life to find out if filing for bankruptcy is the answer to your problems.
You have to decide if it’s worth going through all the stress and expense of filing for bankruptcy. Moreover according to the new bankruptcy law, you have to pass the means test to file for bankruptcy. This is because if you don’t manage to pass this law, you cannot even consider using bankruptcy as an option to get out of your financial crisis.
File only when you are 100% sure
After learning all there is to learn about bankruptcy, thoroughly understanding the bankruptcy law and understanding how its implications on your life, you have to make the final decision of filing for bankruptcy. It is only when you are 100% sure that bankruptcy is the only option you have for yourself should you start filing for bankruptcy.
If you are not 100% sure about filing for bankruptcy, take more time to think about it as once you file, there is no turning back. Not only will it remain in your credit for ten years, remember that whenever you look for a new job, and if they ask if you have ever filed for bankruptcy, you have to say ‘yes’.
Use the help of a bankruptcy attorney
If you decide to file for bankruptcy, it is better to do so with the help of a reliable bankruptcy attorney. You will have to decide whether to file for chapter 7, 11 or 13 bankruptcy, which is best decided upon with the help of the bankruptcy attorney.
Moreover, when you file for bankruptcy, filling up of the form proves to be easier with the help of the attorney who is well versed with the bankruptcy law.