Bankruptcy is designed to eliminate your debts and allow you to start over. Many seek bankruptcy protection because of mounting bills from illness, injury, or job loss. While it is a viable solution for some, it isn’t for everyone. Before filing for bankruptcy, there are a few things you need to do. Find out more from bankruptcy lawyer Ray T. Kennington, Attorney at Law in Ozark, AL.

Take These Steps Before Filing Bankruptcy

Consolidate Debt

Depending on your total debt, this might be an option for you. It allows you to reduce your total payments and settle your debts for less than what you currently owe. You make one monthly payment to the consolidation company, and they disburse the funds to your creditors.

Pay Off Creditors

If you have several assets and minimal debt, you should try to settle the debt with the creditor for less. Consider selling your boat, luxury automobile, or motor home to pay off the debt.

Consult a Bankruptcy Attorney

Spend time discussing your situation with a lawyer. Gather all your debts, income, and asset information before the meeting to provide the attorney with a complete overview of your situation. The lawyer will determine if you are eligible to file for a Chapter 7 or Chapter 13 bankruptcy.

Certain requirements must be met to be eligible. Depending on your situation, you might not be eligible for Chapter 7 relief. The attorney can walk you through the specifics of bankruptcy law and help you determine what’s best.

By following the tips above, you can figure out what will work best for your situation. Schedule a consultation with lawyer Ray T. Kennington, Attorney at Law in Ozark, AL, to discuss your case. Visit him online or call (334) 445-1200.