Questions to Consider Before Claiming Bankruptcy

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Many people are having problems with money in today’s society. After all, financial education is not always taught to everyone. But there is no need to be ashamed of that fact. If you aren’t sure about how to handle your finances, there will always be help out there for you.

If you having problems with debt and want to escape by claiming bankruptcy, take a good hard look at your financial status before you make a decision. Filing for bankruptcy is a major decision, lasting from seven to ten years on your credit report, it really is only to be used as a last resort, and not as a get out of jail free card. Seek advice from financial advisors and bankruptcy consultants and see if you can change your situation by changing your financial habits instead. Ask your consultant about the necessary paperwork and any questions you may have. Here are some examples of questions to ask your bankruptcy consultant.

Are you a U.S. citizen and have you ever claimed bankruptcy before? How much debt and assets do you have? Which debts are unsecured and which are secured? Are you a homeowner? What is the value of your property and how much is your mortgage balance? Do you have any savings or inheritance? Did you know that alimony, student loans, and child support can’t be removed under a Chapter 7 Bankruptcy claim? Did you know you must complete a credit conseling course before you can be applicable for bankruptcy? Did you realize that claiming bankruptcy is not an overnight process and it can be very expensive in the long run?

These questions and more are simply guidelines that you need to be aware of before you start your first bankruptcy consultation. Be prepared to take notes and learn more about the process before you choose to continue. Since there is a vast amount of information, it is easy to forget, so don’t forget to review the information periodically.