Bankruptcy is often associated with hitting rock bottom, and this negative stigma leads many people to shy away from filing. But the truth is bankruptcy is a great option available if you’re in a difficult financial situation.

Bankruptcy can give you a financial reset and the ability to live the life you always wanted. If you’re thinking about filing for bankruptcy, you need to take a few steps before you can start.

Before Filing for Bankruptcy, Take These 5 Steps

1. Figure out which type of bankruptcy will work best for your situation. The two main types are Chapter 7 and Chapter 13 bankruptcy. Chapter 13 will mean you repay a portion of your debts through a repayment plan that typically lasts between three and five years. Chapter 7 bankruptcy allows for most of your debts to be discharged. There are certain requirements that must be met in order to qualify for either type of bankruptcy.
2. Complete credit counseling, which is required under bankruptcy law. This step can be completed online.
3. Compile and organize all information related to your financial situation. That means making a list of every creditor and splitting them into two categories: unsecured and secured. They all have to be notified when you file for bankruptcy.
4. Stop using your credit cards, make sure any automated payments are stopped, and file your taxes. Using a credit card right before filing for bankruptcy might be misconstrued as fraud since you have no intention of paying that debt.
5. Hire an attorney experienced in bankruptcy litigation.

Let Attorney Joel R. Spivack Be Your Bankruptcy Guide

The good news for you is that the right bankruptcy attorney is not far away, especially if you live in New Jersey. The Law Office of Joel R. Spivack is where you will find the experience and expertise you need to successfully work through the bankruptcy process.

Mr. Spivack has been helping New Jersey clients with their financial struggles for more than 30 years. And if bankruptcy is not the answer for you, he can provide you with bankruptcy alternatives. All you have to do is fill out the online contact form to begin discussing your case with him today.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.