If you are buried under a mountain of debts, and you don't see any way that you can possibly get out from under it, you may think about filing for bankruptcy. That way you can get some of your debts forgiven while getting others paid off. That will allow you to get out of debt and work on finally getting ahead. If you are going to file for bankruptcy, there are things that you are going to need to do first:
One of the things that the judge who will sign off on your bankruptcy is going to look at is whether or not you have tried various methods of getting out from under your debt. That will include credit counseling. When you use these services, you will learn a whole lot of things, including different ways to budget, how to track your cash so that you know where everything is going, and various ways to get your bills under control. The credit counselors may also help you to negotiate with your various creditors to set up payment plans that you can work with. The nice thing about working with credit counselors is that you can work with them for a while, which will help you learn new skills when it comes to handling your money. After you go through the intensive part of the program, you may still meet with the counselor on a regular basis, just to make sure that you are still staying on track or to ask for advice if something strange pops up.
Figure Your Income and Outgo
One thing you need to do is to sit down and figure out exactly what your total income is and what your total debt load is as well as what your total monthly outgo is, such as rent/mortgage payments, utilities, and so forth. Not only will that let you see what your income is in comparison to all the things that you have to pay for. You will have to provide all that information when you file for bankruptcy, but it's good to have all that information anyway because that will allow you to see what areas you need to work on so that you can get what you need.
Filing for bankruptcy should be your last possible choice, but if it looks like that's your only option, there are things that you should do first. Contact a chapter 7 attorney for more information and assistance.