First you want to make sure that there are no other alternatives. A bankruptcy can remain on your credit for up to ten years.
Before you can file for bankruptcy, you must receive credit counseling by an agency approved by the United States trustee’s office. Once you have done this, the agency will give you a certificate showing that you met the requirements. You must then file this certificate along with a packet of forms listing what you own, earn, owe, and spend, to the bankruptcy court. You will also need to submit proof that you filed federal and state tax returns for the previous four years.
If you are filing for a chapter 13 bankruptcy, you must also file a chapter 13 repayment plan showing how you will pay off your debt and pay the filing fee.
It is a good idea to be working with an attorney on this. A bankruptcy attorney will save you countless hours of worrying and frustration. They will assist you in deciding which chapter of bankruptcy is right for you and will walk you through every step of the bankruptcy process. You can also then refer all creditors to your lawyer’s office and they will be able to speak on your behalf.