Filing bankruptcy is not an easy decision to make and isn’t one to be taken lightly, either. Educating yourself before meeting with bankruptcy lawyers will help move the process along as smoothly as possible. While the processes for filing for personal and business bankruptcy varies, the basis remains the same. There are questions you should be prepared to ask and answer as well as ways to prepare yourself.
What brought you here: Be prepared to answer the question, “How did you get here?” It can be an uncomfortable question to answer but knowing how you were led to file bankruptcy is a large part of the process. There are many people who don’t understand how they wound up in so much debt.
If your debt was brought on by one-time events that left you unable to work or in dire financial straits, bankruptcy law was designed for you. There are many unfortunate instances of productive citizens suddenly falling ill or getting divorced and being left with tens of thousands of dollars of debt. A study done by the American Journal of Medicine found that 62% of bankruptcy claims are due to illness or medical bills. In conjunction with the fact that 60% of filers make less than $30,000 a year, this makes up for a majority of filings. Bankruptcy is meant to help with those situations.
Mountains of paperwork: Be ready to fill out more paperwork than you would for a home loan. There will be long meetings with lawyers and hours spent hunched over a stack of papers. While it may seem relentless, the help of a lawyer will significantly increase your chances of winning your case. The success rate for Chapter 7 bankruptcy claims made with the help of an attorney is 95%. Making sure you have your personal information readily available will help save you some time.
Bankruptcy is public: While this makes some people nervous, it’s not meant to. Your filing for bankruptcy is public information but there’s a good chance that no one you know will find out without you offering the information. Also, bankruptcy is not meant to be shameful so don’t let anxiety hinder the situation. Your lawyer will go over the logistics of this during your first meeting with them.
Have you had an experience with bankruptcy? What kind of advice would you give those going through the process? Sound off in the comments below!