There is no shame in filing for bankruptcy. You should proudly take pride in going for it as it can clear up your debt and allow you to start fresh. It can help you restructure your life and if you learn from this lesson, you will thrive in the long run.
Think of it as a natural result of capitalism. In a capitalist system, entrepreneurs take risks and sometimes things go wrong. So, how does one go about the process of filing for bankruptcy?
Well, this depends on your location. For someone who lives in Philadelphia, here is how to file for bankruptcy.
#1 Compile all the necessary documents
When looking to file for bankruptcy in Philadelphia, there are several documents that you will need. For a start, you will need to compile your tax returns. You will also need to compile a list of all current and previous bills and your proof of address.
The goal is to prove that going by your income Vis a Vis your expenses, you are not in a position to pay your bills. A good record of your income versus your expenses can also help guide you on the type of bankruptcy in which to file.
For instance, if you have no income, then it would be more practical to go for chapter 7, where your assets are sold to absolve you of liability.
However, if you have an income but are under pressure from creditors, you can file for chapter 11 and get the space to reorganize your debts.
#2 Go for credit counseling
When filing for bankruptcy in the State of Pennsylvania, it is a must that you take credit counseling. The goal is to help you better understand your standing in terms of assets and liabilities.
This can give you an idea of how to better reorganize your debts, and possibly opt for chapter 11 bankruptcy instead of chapter 7. The counselor is also mandated to take you through the options that you can take to avoid filing for bankruptcy.
Bankruptcy is not easy and can be emotionally draining. As such, if there can be a way to overcome your debt without filing for bankruptcy, it would be the best route to take.
#3 Fill the bankruptcy forms
When filing for Chapter 7 bankruptcy in Philadelphia, there are 23 forms that one needs to fill up. While they have lots of legal terms, they are easy to fill up when you have the right documents with you.
Alternatively, you can engage the services of a bankruptcy lawyer for this service. Just make sure to go for one that meets your needs and at a reasonable cost.
Once you have filled them, print them and prepare to go to court.
#4 Let the law take its course
Once you have filled the forms, the next steps will involve lots of legalities.
However, if you have accessed a good Philadelphia bankruptcy lawyer, then the process should be smooth. It also shouldn’t put a further drain on your already strained finances.
#5 Restart your life
Once you are through with the process, and your assets are gone or you have a chance at reorganization, go for financial lessons.
This will help you avoid going through the same process again in the future.