If you are under lots of financial stress, and your income has decreased considerably as well, then filing for bankruptcy might be the best option available to you right now.

If you are under lots of debt and are not in a financial position to repay the debt, You can avail the option of filing for bankruptcy in which the debt is either disposed, Or you are given more time to repay the money you owe.Moreover, filing for bankruptcy can help you get a stay order on house foreclosure and vehicle repossession.

However, there are a few very important things you must know before filing for bankruptcy. Let’s discuss a few of those important things in this small personal bankruptcy guide.

Individual Bankruptcy is of Two Main Types

If you are going to file individual bankruptcy, you will have to choose between two of the main types of individual bankruptcy. You will have to choose between chapter 7 and chapter 13 bankruptcy to start with.

However, in order to succeed in your bankruptcy case, you must choose the right type of bankruptcy for you. For this task, you must always consult with a lawyer and avail their services to win your bankruptcy case. You can learn more about chapter 7 and chapter 13 bankruptcy online, all while sitting in a meeting with your bankruptcy lawyer.

Don’t Do Expensive Shopping Before Filing For Bankruptcy

If you go on a heavy shopping spree around 2 to 3 months before filing for personal bankruptcy, those actions might be calculated under bankruptcy fraud. So, avoid doing that at all costs.

The court might allow your credit card company to recover the funds you’ve used up to 90 days before filing for bankruptcy.

Moreover, transferring one or more of your properties to your relatives right before filing for bankruptcy can also be seen as a fraudulent transaction, and it can cost you your bankruptcy case.