Once you've decided to file for bankruptcy, you are taking proactive steps toward a stronger, healthier financial future. But before you move the bankruptcy process in motion, there are a few things you should do to ensure everything moves along as smoothly and efficiently as possible. Below, the bankruptcy lawyers of Padgett & Robertson, Attorneys at Law, in Mobile, AL, discuss three of these things in more detail.

3 Things to Do Before Filing Bankruptcy

1. Explore Your Other Options

Bankruptcy should really only be considered as a last resort. It will have an impact on your credit score, and securing new lines of credit will be difficult—but not impossible—in the months following your filing. Because of these challenges, you should first consider all other options before pursuing bankruptcy. Debt consolidation and debt negotiation are two ways you may be able to get a handle on your debt without resorting to bankruptcy.

2. Go Over Your Monthly Budget

There are two types of bankruptcy available to consumers, Chapter 7 and Chapter 13. Chapter 7 is a debt elimination and works best for individuals who have little or no monthly income. Chapter 13 is a debt repayment plan and is ideal for those with some extra money to put toward the plan after all other monthly bills have been paid. To ensure you find the right type of bankruptcy for your needs, review your monthly budget, and see how much, if anything, you have left over once all your regular commitments are paid.

3. Gather All Your Financial Information

When the time comes to file, you will need to turn over all of your financial information to your bankruptcy lawyer. In addition to your outstanding bills, you will also need to detail all of your income, expenses, and assets. The bankruptcy courts need to have a full picture of what you owe, how much you make, and what you own before they can approve your dismissal or your repayment plan.

The bankruptcy lawyers at the law office of Padgett & Robertson, Attorneys at Law, are here to help you find debt relief solutions. They have been serving the Mobile area for more than 35 years. Call (251) 342-0264, visit them online, or message them on Facebook or Twitter to schedule a free initial consultation with a bankruptcy attorney today.