While there are some rare situations when a person or business may need to file bankruptcy in a hurry — such as to avoid foreclosure — it is never something that should be done without thorough preparation. Bankruptcy in all its forms can be a powerful process if executed correctly. However, petitioners who fail to be careful may find themselves missing the full benefits of the process or, worse, having their petitions dismissed without relief, or their discharges denied.
There are several steps you and your attorney should take before filing a petition for bankruptcy, including some new requirements imposed by the Bankruptcy Abuse Prevention and Consumer Protection Act:
What you do before filing a petition for bankruptcy can have a huge effect on how that petition proceeds and how satisfied you are with the result.
It is possible in some situations to complete a non-bankruptcy debt consolidation program, or a settlement with your creditors. However, you should execute extreme caution in who you choose to help you.