If you are just too deep in debt, there may not be any other choice but to file for bankruptcy. If you don’t, creditors may be able to possess your home and other valuables in damages. You can cancel out non-secure debt like credit card debt with certain types of bankruptcies too. However, filing for bankruptcy can be a really tough process. Here are several ways that you can survive the process without delays:
1. Hiring a Bankruptcy Lawyer
You do need to hire a lawyer to file for bankruptcy. Don’t worry about fees; in most jurisdictions, attorney fees for bankruptcies are very limited. In any case, you won’t be able to file without legal expertise. Bankruptcy law is quite intricate and you won’t be able to wing your way through proceedings. Keep in mind to hire a lawyer from your state. If you are in Georgia, you need an Atlanta bankruptcy lawyer, not one from New York, no matter how fancy. The reason is that each state has different laws for the process that only an in-state lawyer would know.
2. Make a Plan
Preferably with the help of your lawyer, you need to make a plan about what to do before and after you file for bankruptcy. Remember, this process is complicated. Making sense of all your finances with a plan is the only way to emerge from proceedings sanely. Making a plan early also makes it easy for you to gather the necessary documents to present to court.
3. Don’t Let Your Emotions Get the Best of You
Yes, it’s understandable that you would be stressed when dealing with a bankruptcy. But do not let it get to you. You will need to maintain a clear head to plan for your future. It’s easy to get mad or depressed and make the wrong decisions during the proceedings. But you will certainly regret later. Think instead of the positives of bankruptcy (the collection calls would stop for a start). Focus on what’s important and keep the bad emotions at bay.
4. Know What Your Final Goal is
The point of filing for bankruptcy is to be debt free. Your eyes should never waver from this goal. Depending on the type of bankruptcy you file, you may have to go through with a payment plan. Do stick to this payment plan, otherwise your bankruptcy would fail and you would be back at step 1. If you stray from a payment plan, your entire financial future would be damaged. So, make up your mind and always visualize the end goal to keep yourself on track.
5. Don’t Blame Yourself Too Much
Now is not the time to blame yourself or anyone else for the bankruptcy. Now is the time to get your financial affairs in order. You only waste energy and time playing the blame game. You can introspect and understand where you went wrong and avoid making the same mistakes in the future. Anything short of that is a waste of time.
Bankruptcy is not all that bad. Follow the above steps and you will survive this one too.