Do It Yourself Bankruptcy

If you are reading this you have decided to declare bankruptcy. There is nothing to be ashamed of. You have obviously been brave with your money, and whether it was through your own mistakes, or variables out of your control, that business failed.

Thankfully, your live in America, where second chances are the reason people moved here, and thus they are ingrained in the constitution. Here you can admit defeat and then live to fight another day. This is the beauty of declaring Bankruptcy.

Hiring a lawyer is a good idea if you can afford it. A lawyer will help you save money in the long term if your bankruptcy is complicated. But, if you are bankrupt the last thing you’ll want to do is spend money on a lawyer.

If you do decide to go it alone here are the steps that you should follow:

  • Decide if filing for bankruptcy is the right step for you.
  • Determine if you qualify for Chapter 7 bankruptcy
  • Get all of necessary forms. These can be found at government buildings and even most stationary stores.
  • Cancel the largest amount of debt first. Because you have filed for bankruptcy all creditors must stop compiling interest, this means that they will stop hounding you. This is a much-needed relief when you are suffering through a bankruptcy.
  • Single out any debts that will outlast your bankruptcy.
  • Keep the most property that you can.
  • Deal with the secured debts, as they tend to be the easiest.
  • Try and represent yourself in bankruptcy hearing. This can be a daunting task but it is one that is worth the money. Try and find self-help books to aid you in this. The court will not treat you harshly.
  • You can then dismiss your own cases if you find out that you can survive without filing for bankruptcy.
  • Do you best to rebuild your credit after you have filed for bankruptcy?

The next thing that most people are concerned about is losing your home. In almost all cases you personal home is exempt from your creditors. This is a fair concession and a humane one. Nobody wants to end up on the street due to bankruptcy.

Now you must sit back and come up with your next business idea. At least one in five businesses fail in their first year. This should give you some hope. There will be another day and you will look back at your bankruptcy and be amazed that you were ever as stressed out as you were.