FILING FOR BANKRUPTCY
by Daniel Neller
http://www.legal-kits.net/

. This is a personal decision, greatly influenced by the amount of serious debt and your ability to meet the original payments or pay the full amount.

The critically important date of filing often determines whether or not certain debts will be discharged. (This is to keep people from going out and buying expensive things, and then declaring bankruptcy the next day). The decision as to when to file a bankruptcy petition should be based upon the facts of the individual circumstances.

Be aware that you must give full and complete financial information in a bankruptcy petition. Compiling a complete list of debts and creditors is absolutely critical to the bankruptcy process. If you inadvertently omit listing a debt, it may or may not be wiped out, depending on your circumstances. A bankruptcy attorney will help you decide whether or not to file for bankruptcy.

If the attorney agrees that bankruptcy is best for you, there are cheaper alternatives. Legal forms can be a cheaper way to file for bankruptcy and wipe those debts. Why spend money you don’t have on expensive attorneys when you can do it yourself.

ALTERNATIVES TO BANKRUPTCY
Though many people file bankruptcy to deal with their debts, just as many shy away from bankruptcy and consider other solutions to straightening out their debt problem.

One way to handle your debt is to contact your creditor(s), and try to work out different payment arrangements or options. For example, if you are snowed by credit card debt, get in touch with the company, explain the situation, and ask to temporarily reduce your minimum monthly payments, waive late charges, and extend the payment period – with smaller payments at "no" interest.

A second recommendation is to turn to the Consumer Credit Counselling Service, a nationwide non-profit organization that will work with you and your creditors to devise a more manageable repayment plan suited to your finances.
 
A third might be to sell any of your assets that have a resale value and apply the proceeds to your debt. Any balance due can be negotiated with the creditor.

Finally, another solution is to consolidate all outstanding debts into a single loan (often through credit card balance transfers and home equity loans). This approach relieves you of being saddled with debt from multiple creditors, since you will be making payments only to one lender.

WHAT IS A REAFFIRMATION AGREEMENT?
Depending on individual circumstances, you may wish to keep possession of the some of your property such as an automobile, and thus may find it advantageous to "reaffirm" the debt. A reaffirmation is an agreement between you and the creditor that you will pay all or a portion of the money owed, despite the bankruptcy filing. In return, the creditor promises that, as long as payments are made, the creditor will not repossess or take back the automobile or other property. If you were not represented by an attorney during the negotiating of the agreement, there will be a reaffirmation hearing.

Before entering into such an agreement, ask an attorney to ensure that your rights are protected and that any reaffirmation is in your best interest.

FILING FOR BANKRUPTCY
If bankruptcy is the only way out and all other methods have been exhausted, consider using legal forms as they are a cheap alternative to attorneys. In times of bankruptcy, the last thing you need is mounting attorney bills. With legal forms and kits you can file your own bankruptcy for a one off cost (plus government charges).

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