Here Are 3 Steps to Take Before Filing for Bankruptcy

Once you decide to file for bankruptcy, you may be wondering what the next steps are. The topic of bankruptcy has quickly become one that is highly stigmatized and deemed taboo in society. And unfortunately, these labels make it difficult to get the real and vital information on it. 


The best thing you can do is contact a bankruptcy lawyer for bankruptcy help in Delray Beach. A lawyer can instruct you on what to do and confirm that filing for bankruptcy is a good move in your situation. It never hurts to have an expert’s opinion, especially when it comes to a big decision like filing for bankruptcy. Here at Mufson Law, our team is here to help with all things related to bankruptcy. Whether you need more information or want us to evaluate your case, we have you covered.


Step 1: Evaluate Your Debt

Whether you are 100% confident in filing for bankruptcy or not, you should first evaluate your debt. Debt comes in many forms, student loan debt, medical debt, credit card debt, and the list goes on. We recommend printing all of this information out or having it saved in a secure location. You want to be able to access it all in one spot. Next, double-check what you owe and gameplan. If it seems that you can budget and pay some of it off, maybe bankruptcy is avoidable. Or, on the other hand, if the debt is impossible to pay off, you know that filing for bankruptcy is the next move. You are also going to want all this information in one place if you do file bankruptcy. Your attorney is going to need to see these numbers to get you bankruptcy help in Delray Beach.


Step 2: Contact a Bankruptcy Lawyer

Now that all of the numbers are in an easy to access place, you can move on to step 2. During this step, you are going to want to reach out to a bankruptcy lawyer. Our team at Mufson Law can hop on a call with you for a free case evaluation. While on this call, we can discuss your unique situation and talk about the numbers. The more information you can tell us, the better legal advice we can give. If our team finds that bankruptcy can help you and is the best move for you, we can move forward with helping you file. Filing for bankruptcy is quite the process and has many phases to it. No one can do the whole thing alone, and it’s best not to. You want to do it right and avoid cutting any corners. Remember, filing for bankruptcy is for you to get out of debt and secure a stable financial future. If we’re going to do it, we need to do it the right way for your situation.


Step 3: Choose Between Chapter 7 and Chapter 13

Now that you are filing for bankruptcy, you need to choose between Chapter 7 and Chapter 13. These two ways of filing are similar but have critical differences. The main difference you want to pay attention to is the asset part of each. In Chapter 7, you are eliminating debt, such as medical debt, credit card debt, and unsecured debt, as an individual or small business owner. You get to keep your necessary assets, such as your home, car, and home necessities such as appliances. However, you may not be able to hold onto everything. In Chapter 13, most things are the same as far as who is filing and what kind of debt they want to eliminate. The main difference is that you will pay some of the debt back. You will have monthly payments based on your income and expenses. This payment plan will likely last between 3 and 5 years. There are more nitty-gritty details to consider, but your bankruptcy lawyer will help with that.


We Can Help! Contact Us Today!

For a free consultation and bankruptcy help in Delray Beach, reach out to Mufson Law. When you hop on a phone call with our team, we can help point you in the right direction. Whether you end up filing for bankruptcy or not, our team can give you our expert opinion on your unique case. Reach out to us at (561) 272-1003 for your free consultation.