Yes, you read the title right. I am actually writing a post about choosing bankruptcy. No, I haven’t changed my mind about bankruptcy, it is still not something I recommend. However, I realize that many of you struggling with debt feel it is your only choice.
So since bankruptcy may be the option you choose I thought it best to insure you have as much information as possible about the process so you don’t get ripped off during such a stressful process. With that said, I thought I would provide some valuable suggestions if this is the path you decide to travel.
This is a huge life changing decision so it is so important that you do your homework and research exactly how to file as well as understand the whole process. The problem is most bankruptcy attorneys will just tell you what you need to do, sign here, pay here and send you on your way. You need to get some unbiased information about the process.
For example I am sure you know there are three common types of bankruptcy:
- Chapter 7 – Liquidation
- Chapter 11 – Reorganization
- Chapter 13 – Adjustment of Debts of an Individual with Regular Income
Did you know that if you earned too much money in the past, you cannot file Chapter 7 today even if you are unemployed? Personally, I never knew that. What about this, you can’t file Chapter 13 without a regular income or sufficient income. Now that doesn’t make sense to me, but that is the way it is. The good news is there are solutions. I use these as just a couple examples of how confusing bankruptcy can be, especially when you are already stressed about money and your debt.
Even though I didn’t know about those two little Chapter 7 & 13 tidbits, Dave Clark does know. He is an attorney and bankruptcy expert. Since you are stressed about money, and I am no expert about bankruptcy it is best to get quality information from someone who has been trained and knows about the process. That is why I would recommend reading his manual on personal bankruptcy strategies. If you are going to file, I highly recommend doing the process with as much knowledge as possible.
I like Dave’s manual because he discusses in detail the different options you have as well as the ability to mix and match options. He also discusses the pros and cons of the options as well as making sure you are filing at the right time. Yes, that was also new to me, the timing of your bankruptcy is important. You don’t want to file too soon and you certainly don’t want to file to late.
Dave also explains how important it is to do pre-bankruptcy planning. It is important to discover which of your assets may be at risk as well as how to avoid prohibited financial transactions that will always get you in trouble. He also tells what the difference is between foreclosure and bankruptcy, I bet you think you already know, you might be surprised.
This manual is non-bias, straight forward, it discusses the process of bankruptcy, but what I like best is it also discusses life after bankruptcy, something that most people don’t think about like the timing the sale of assets, new loans and credit after filing bankruptcy.
Yes, if you are planning to file for bankruptcy I recommend getting an attorney but before you do that get the Bankruptcy Strategies manual, read it, and know the whole process so when you speak to your attorney you will know if what he or she is saying is on target or not. Knowledge is power and at a time like this, you need all the power you can get.
