As your finances spiral out of control, it’s critical that you take a step back and consider all your options for getting back on track. It’s not something you want to do, but filing for bankruptcy could be the best way to gain your financial footing and position yourself for a better future.
Don’t let bankruptcy scare you. Yes, it’s a complex process that will affect you in many ways, but it’s important that you collect as much information as necessary to ensure yourself of taking the right approach.
Here are some common bankruptcy mistakes that can add stress and complications to the process:
- Thinking you can do it alone: Yes, you have the ability to file for bankruptcy on your own, but doing so is a challenge on many fronts. You’re best off consulting with a bankruptcy attorney who knows the law, the process and how to protect your legal rights along the way. Also, don’t make the mistake of waiting too long to consult with an attorney. It’s better to do this early on.
- Believing it’s easy: This doesn’t mean you should be scared of the bankruptcy process. It does mean you should prepare for a time-consuming process that will bring stress and challenges into your life. When you prepare for this in advance, it’s easier to stay the course no matter what comes your way.
- Choosing the wrong type of bankruptcy: For example, if you’re an individual filing for bankruptcy, compare the pros and cons of Chapter 7 and Chapter 13. This will give you a clear idea of what you get with both, allowing you to determine what to do next. Most people gravitate toward Chapter 7, as it provides a fresh start with no repayment plan, but there are benefits of Chapter 13, too.
These are the types of bankruptcy mistakes you need to avoid. Doing so will give you confidence that you’re heading down the right path.
It’s scary to come face to face with bankruptcy, but you have what it takes to make it out the other side. And when you do, you’ll feel much better about your current situation and financial future.