Filing Personal Bankruptcy: 3 Ways On How To Declare Bankruptcy

How can you get started with your bankruptcy? If you want to declare yourself bankrupt you have to start the bankruptcy process by filing the official bankruptcy forms. You need to know the several methods on how to file for bankruptcy. Your objective is to get the most affordable bankruptcy solution and save huge money on legal expenses. This article will give you an overview of the different methods of filing for bankruptcy. This article is not a substitute for legal counsel, and it is not intended to give you specific legal advice on your debt situation.

The Safest Method

This is the most simplified and safest way to file personal bankruptcy -- employ a bankruptcy attorney full-time. The lawyer will assist you through the full bankruptcy process. It is the attorney's job to assess, prepare and file your papers. During the meeting of creditors your lawyer will handle all the tough issues that may arise. The only disadvantage in using this method is that it costs more. You must find a means on how to screen lawyers properly for you to get the best possible deal if you want to use this method.

The Hybrid Method

This method is the most followed technique in filing for bankruptcy. The hybrid method normally works best in filing Chapter 7. The key ingredient here is to hire the services of a lawyer or law firm to prepare your documents. You need to pay the service provider with a flat fee. Once they file your case you are on your own. You can save large amount on legal expenses because part of the solution is a self-help work. You should look for a bankruptcy preparation service that will also give you a mini seminar on how to manage the do-it-yourself portion as part of the package.

The Cheapest Method

This method is a full self-help solution or "pro se" filing. You need to educate yourself with the complexity of the bankruptcy laws. You can download the official bankruptcy forms free but it is usually easier to do this method if you buy an up-to-date bankruptcy book or a bankruptcy kit. If you try to ask instructions from your local court clerks they will say they can't help you. They will not give you advice on how to fill up the forms because that would be "practicing the law" -- a task reserved only for licensed bankruptcy lawyers.

What to Do Next?

Now that you know the different ways of filing bankruptcy, which method are you going to use? The new bankruptcy law does not require you to have an attorney, but it is in your best interest to seek the advice of an experienced bankruptcy attorney. If you choose to file bankruptcy without the help of a lawyer, you will need to have to exhibit a lot of patience and diligence. Keep in mind and remember that when it comes to filing for bankruptcy, you either liquidate your assets or you protect them.