Do It Yourself Bankruptcy

When it comes to filing personal bankruptcy, careful thought and diligent preparation must be given to the process of completing a do it yourself bankruptcy. As though the pressure of unmet bills hanging over one's head is not enough, added fears from the unknown consequences of this decision can loom like an insurmountable obstacle. However, there are several areas to consider which may reduce this uncertainty. With forethought and basic research skills, a person may deal successfully with this difficult situation. A willingness to consider the counsel of others will also result in confident decision-making in the area of personal finances and insolvency.

First, a decision must be made as to whether one should undertake a do it yourself bankruptcy. Obviously, if a person is in the situation where they are weighing this option, there is already the emotional pressure of dealing with unmet obligations. Details surrounding the process of bankruptcy -- like knowing which type of bankruptcy best resolves a particular situation, and knowing how to go about filing personal bankruptcy -- may involve a complicated process. The emotional aspect of these matters may necessitate advice from a more objective source. Also, it is wise to give thought to the effects of these legal actions upon one's financial future. For these reasons, although one may be legally able to file for a do it yourself bankruptcy, it is probably not a good idea to do so without at least attempting to get a handle upon this course of action.

There are several layers of research which may be undertaken before filing personal bankruptcy. There is personal investigation, seeking the advice of free credit or legal counseling services and finally, consulting with a legal professional. Even if the decision has already been made to engage the services of a lawyer, a person would be wise to complete this process of investigation, if only to be able to ask the best questions and make the most of the time spent with legal counsel. If one is determined to undertake a do it yourself bankruptcy, a good start could involve investigating the financial situation. Draw up a list of unpaid bills and obligations. Resurrect those bank statements from wherever they are stashed and check on that long-neglected checkbook balance. This may seem like a grueling process, but remains necessary in order to ascertain exactly what is the current state of affairs in personal finances.

Another aspect of personal investigation is the study of matters necessary to the situation. Become informed in these areas by studying them in books, magazines, newspapers and on the Internet. There is a tremendous amount of information available for free in libraries and online. Not all advice is good advice; discernment must be exercised. Yet anyone may become at least conversant on financial matters which impact their lives. For example, there are different types of options available in filing personal bankruptcy. The most common is a filing under Chapter 7, in which a trustee sells the debtor's assets and distributes the resulting profit to the creditors. Under Chapter 11, 12 and 13 filings, an attempt is made to restore the debtor's financial situation after insolvency by using future earnings to pay debts rather than liquidate assets. Funds held in an Individual Retirement Account (IRA) may be protected from inclusion in liquidation.

The usefulness of wise counsel is apparent at this point. As Proverbs 11.14 says: "Where no counsel is, the people fall: but in the multitude of counsellors there is safety." Many states and lending institutions offer financial and legal counsel for free or reduced cost. When counsel is readily available both in the area of personal finance and legal advice, it would seem foolish not to take advantage of such an opportunity. This is especially relevant when a home or business is at stake. At times, other important areas of life may be jeopardized by the threat of bankruptcy, such as one's health or marriage. Surely maintaining these merits welcoming every advantage which counsel can provide.

With information and counsel close at hand, and do it yourself bankruptcy programs available at a reasonable cost, is it necessary to consult an attorney at all? Why do most of the paperwork oneself and then pay hundreds of dollars for a lawyer to basically tack on a signature, when some software could solve the problem far less expensively? This can be a difficult decision. Some people may be capable of getting a favorable result from utilizing bankruptcy kits or software. Of course, it would be important to obtain a reliable program which would not open a computer system up to unwelcome intrusion or malicious programs. Yet this, too, can be fairly easily accomplished. Software may be bought which allows the customer to utilize a bankruptcy program without having to download it onto their own personal computer.

It is sensible to do all the research one possibly can, and reasonable to try to reduce costs by doing most of the work involved in filing personal bankruptcy oneself. There are few joys that can be compared with being able to sleep at night, undisturbed by fears of losing one's property and possessions. Working out a way to save a home or business can be very satisfying. Yet precisely because the object of one's efforts is so important, legal advice should be sought to reaffirm a position. In this way, decisions can be made with confidence, and assets may be preserved for future use.

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