Filing for bankruptcy should never be a snap decision. There are several things you should do and several things you must do before taking this major step. Filing for bankruptcy without sound advice and proper planning at best can cause you to miss out on the full benefits of the process. At worst, it can result in some of your creditors being omitted or your petition being dismissed.
Here are several steps you should take before filing for bankruptcy:
Account for your debts — Gaining an understanding of the amounts and types of your debts can help you and your bankruptcy attorney determine if bankruptcy is really your best option. Bankruptcy does not treat all types of debts equally. If a large portion of your debt is a nondischargeable type like criminal fines, domestic support obligations or secured debt, bankruptcy may not help your situation as much as you think.
There is much more to preparing for bankruptcy than walking into court and filing a petition.