Personal Bankruptcy is not a decision individuals and families should take lightly.  The decision to use bankruptcy as a tool to resolve financial struggles is not a light one.  However, personal bankruptcy, in many cases is an option that may very well ensure a fresh financial future.  It can be the start that many people need.

Bankruptcy is Complex

Personal Bankruptcy is a complex process that requires research and careful attention.  When you file a personal bankruptcy case, whether it is Chapter 7 or Chapter 13, you  must include all aspects of your financial life.  This includes making your tax returns, bank statements, pay checks, income, and property public in many circumstances.   It is imperative to review all of this before filing, or with your bankruptcy attorney.

Debts Prior to Filing a Personal Bankruptcy Case

It is important to keep track of all of your debts prior to filing.  You should not throw mail from your creditors and debt collectors in the trash.  This can lead to lawsuits, wage garnishments and judgment liens on your home without you even knowing it.  Prior to filing your bankruptcy case, you do not have protection against your creditors.  Therefore, you need to know who your creditors are, how much they are asking, and whether they might offer you options in order to keep you out of bankruptcy.

Complexities in the Personal Bankruptcy Process

After you have all of your financial documents in order, it is time to prepare your personal bankruptcy case.  It is always recommended that you seek the help of a personal bankruptcy attorney.  There are a number of complexities involved when drafting the bankruptcy petition and filing the case with the Court.  The Federal Rules of Bankruptcy requirements are just the beginning.  Each District Court in your location will require certain rules to be followed.  After that, each bankruptcy judge might have their own rules as well.

Additionally, besides following the laws and rules required, you have to correctly calculate your income and expenses according to certain formulas.  Moreover, you have to understand State Laws to properly save your property form getting liquidated during the bankruptcy.

As you can see, there are many emotional, financial and legal factors that go into the decision to file for bankruptcy.  To make the process go as easy as possible, it is important to not only do your own research, but to also seek the help of qualified personal bankruptcy attorneys to guide you through each step of the way.