Thinking About Filing Bankruptcy? 3 Reasons Why It's Important To Go Through Bankruptcy Counseling

Posted on: 15 June 2016

If you are at your wit's end with your debt, you might be thinking about filing bankruptcy. This can be a smart financial move for a lot of Americans, but it is a big step that can have a major impact on your life for quite a long time. Before you do anything drastic, you'll probably want to go through bankruptcy counseling. These are a few reasons why.

1. You May Be Required To Anyway

The court system might require you to take bankruptcy counseling before allowing you to proceed with your case anyway. If you go ahead and go through this counseling now, you can go ahead and knock one step out of the way. Then, if you find that filing for bankruptcy is the best option for you, you'll have one less thing to worry about.

2. You Can Determine the Best Steps to Take

There are actually a few different types of bankruptcy that you can consider filing, such as Chapter 7, Chapter 11 or Chapter 13. Each option has its advantages and disadvantages, so you'll need to learn a little more about each one so that you can take the right step for you. For example, Chapter 7 is a good option for those who don't make over a certain amount of money, and it can allow you to wipe out all of your debts. If you make too much money to qualify for Chapter 7, you may have to go through Chapter 13. Bankruptcy counseling can help you get a better understanding of each option so that you can choose the right one for your situation. Regardless, however, you will still want to talk to a bankruptcy attorney before making a final decision.

3. Get an Idea of What You're Getting Yourself Into

Even though bankruptcy can be a positive thing, it can affect your credit score for a long time to come and can affect you in other ways, too. Bankruptcy counseling can help prepare you for these things so that you don't do anything that you will regret later or so that you don't end up unpleasantly surprised after the fact.

As you can see, bankruptcy counseling can be a smart move for anyone who is thinking about going down this road. Luckily, there are all sorts of options, such as local classes or even online classes. If you talk to a bankruptcy attorney, you can find out more about this counseling.

Click here for banks that can help you in this process or do an online search.