As we discuss in numerous posts in this blog, you may want to explore other options before you file for bankruptcy or go through with a foreclosure. However, you and other Connecticut residents may decide that a personal bankruptcy is the best route to take, after all. You may not be able to get through insurmountable financial challenges on your own, or you may just need the fresh start that a Chapter 7 bankruptcy offers.
Regardless of your reasons for following through with a bankruptcy, you will need to understand that you don’t just walk into a lawyer’s office, fill out some papers and walk away with that clean slate. As NerdWallet explains, there is a process to go through when filing for either Chapter 7 or Chapter 13 bankruptcy, and it may be lengthy. However, waiting a few weeks or months for your bankruptcy to be approved may be far preferable to struggling with financial challenges indefinitely.
Before you file for bankruptcy, you will need make or be aware of the following preparations:
- Taking the means test to determine if you are eligible for Chapter 7
- Checking your credit reports and making a full list of your creditors and debt
- Gathering the paperwork you have available regarding your debt, including credit card statements, collection letters and receipts
- Understanding the differences between Chapter 7 and Chapter 13 bankruptcy
- Taking stock of your assets, including your home, vehicles, bank accounts and personal items
It may seem confusing and overwhelming when you begin to plan for filing for bankruptcy. Fortunately, you will have an ally on your side when you seek experienced counsel. This is why the information here should not replace the advice of a lawyer.