Bankruptcy is an effective way of shielding yourself to from creditors but it can also be a rational decision. The proceedings of the bankruptcy procession are governed by the federal law and it is designed in such a way that it may give you a fresh financial start.
Contact a good and reputed bankruptcy attorney who would suggest you different ways of finding relief to debt. For a trustworthy attorney you may ask friends and acquaintances for reference. Collect all the financial papers that you have including bank statements, outstanding bills, copies of mortgages, paycheck stubs, tax returns etc.
Your bankruptcy paperwork which is also known as petition must include a list of debts that you owe. In case you do not list any creditors, your case may also be dismissed by the bankruptcy court. According to bankruptcy law, it is a federal crime to lie in papers. Discuss about secured and unsecured debts with your lawyer and complete the paperwork as he suggests.
Detail your attorney about your financial position and all the income that you have earned in the past six months. What you have earned in the past few months will decide under which chapter you should be filing bankruptcy. Make sure that you do not hide anything from your bankruptcy lawyer, he will only make things easier for you.
Let the lawyer figure out the suitable chapter for you which will depend on the amount of the debt. He may ask you to file bankruptcy under the liquidation bankruptcy (chapter 7) or (chapter 13) Adjustment of Debts. Chapter 13 is more suitable to you only if you still earn a regular income but because of the pending debts you are in a financial mess.
After the bankruptcy petition is complete, get it reviewed properly by the lawyer and sign the petition papers where he asks you to. You and your attorney can get together to find your case electronically. After the filing process, your creditors will be notified by the bankruptcy court and they will also be sent the Notice of Commencement. The first benefit that you will receive by filing bankruptcy would be an Automatic Stay. You will be protected from creditor's calls or constant chase.
