Filing for bankruptcy can be a daunting task, having a severe impact on our lives and that of a spouse if we are a couple, and regardless of the reason (be it loss of one or more careers, no money, exceeding our budget, being sued beyond our means, unemployment, spending too much, or things just not going in your favor), if you have never done it before or don’t know where or who to turn to, you should seek out a professional bankruptcy attorney. And to makes matters worse, especially if you are planning on filing for bankruptcy alone, filing needs to be done correctly, the requirements are extremely technical, and a misstep may affect your rights or ability to file in the future. Therefore, again, you should seriously consider hiring a bankruptcy attorney.

What you must do when you declare bankruptcy

It is very important, and maybe even required by law, to remember the following when filing for bankruptcy:

• You must list all property and debts in your bankruptcy schedules.
• Do NOT do anything illegal in connection with the bankruptcy case, including hiding or destroying property, falsifying your records or lying. Bankruptcy fraud is a crime. Failure to obey can be very serious for you.
• If you are filing for bankruptcy in the United States, make sure your bankruptcy attorney is familiar with United States Bankruptcy Code, Federal Rules of Bankruptcy Procedure, and local regulations of the court in which the case is filed. In other countries, be aware of your own country’s requirements at the local and national levels.
• You must obtain credit counseling.
• You must file a statement of compliance and a certificate of credit counseling.

Finding an attorney

Can’t afford an attorney, even though we strongly recommend you find one? Free services may be available, and you should search for competent experts and make an appointment. Many law schools have legal clinics that offer free legal services. Court websites are also a great place to get information on free services.

Reasons for Filing for Bankruptcy

When should you declare bankruptcy? Here are some valid times when you may consider such a drastic, life changing action:

• If you can’t make payments on your home or other very expensive item anymore.
• If your credit card debt is out of control and beyond your means.
• If you’re financially sinking due to long term insufficient income.