It can be difficult to predict a sudden drop in income. Maybe you have lost a job. Perhaps you have been injured and are not able to work. If you find yourself struggling against a mountain of debt you cannot seem to move, you may need to file for bankruptcy. While it is advisable to seek an attorney who specializes in bankruptcy law, you might not be able to afford one. If not, there are cheaper ways to file.
It is a good idea to start with an attorney, though. Most bankruptcy lawyers offer free initial consultations, so the first meeting is unlikely to cost you anything out of pocket. You can meet with the lawyer to discuss your options and decide which one best fits your financial situation. Sometimes, attorneys will even refer you to websites or legal aid where you can get help that is less expensive.
The next step to file for bankruptcy will involve gathering financial information. You will need a copy of your credit report. You must also gather your tax returns from the previous two years and your pay stubs (if applicable) from the last 60 days. It is advisable to take a credit counseling course to prove that you have been advised properly. Once you have all your documentation, your attorney or bankruptcy software can use it to fill out the necessary forms. After the forms are complete, they must be filed with the clerk’s office at court.
A few weeks after you file, a trustee of the court can meet with you to ask follow-up questions. It often takes a couple of months from that point to receive notification of the discharge of your debts. With the initial advice of an experienced bankruptcy attorney, proper documentation and the diligence to complete every step of the process, you should be able to file for bankruptcy relatively cheaply.
