your options for getting out from under debt

4 Tips For Ensuring A Smooth Chapter 7 Bankruptcy

Chapter 7 bankruptcy is designed to be a straightforward bankruptcy process. However, you can take steps that will help the process go even smoother for you and set you back on the path to financial success.

Complete Mandatory Counseling

When you file for bankruptcy, you are going to be required to take state-mandated credit counseling courses. These classes are designed to help give you the tools and knowledge to navigate your bankruptcy and to help you manage your finances better so you don't find yourself back in this position again. You have to finish these classes in order for your case to move forward, so take these classes right away. The sooner you complete these classes, the sooner your case can progress, so find the time to take the courses and earn your completion certificate. Luckily, these classes are largely online now, so you can fit them around your schedule.

Hire a Solid Attorney

Second, you are going to want to hire a solid attorney. Look for an attorney that has positive client reviews and who has experience handling your type of case. Look for an attorney that listens to you and respects you when you have your consultation. You want to work with an attorney with whom you get along, as that will make it much easier to navigate the bankruptcy process.

Be Honest About Your Finances

Third, you need to be honest about your finances. You need to share all of your debts, including any personal loans that you owe family and friends. You need to figure out and detail your monthly expenses and be forthcoming with all forms of income that you receive. You also need to share any assets that you have. You need to share your entire financial history and situation with your attorney, not leaving anything out.

Start to Budget

Fourth, you need to learn how to budget. Your credit counseling courses should give you some tools to learn how to budget. You can also use apps and other tools to help you learn how to live on a budget. You need to work on changing your money habits so that you don't find yourself in this position again. You also don't want to acquire new debt while going through bankruptcy, and using a budget can help you with that. 

When filing for Chapter 7 bankruptcy, you want to retain a bankruptcy attorney, take your credit counseling classes immediately, be honest about your financials, and learn how to budget.