Filing for Bankruptcy May Stave Off Disaster

Find a bankruptcy lawyer

Consider hiring a bankruptcy lawyer even before you think it's time to file. A good attorney will start by discussing your options, including those that don't involve filing for bankruptcy, and their potential outcomes. And if bankruptcy is your only choice, your attorney will file the relevant paperwork and help you pull together the required documentation. To find a bankruptcy attorney, ask for references from a lawyer you already know or check the NACBA Web site for a list of its members. Most attorneys offer a free preliminary consultation, after which fees can range from $1,500 to $2,500 for Chapter 7 and $2,000 to $4,000 for Chapter 13.

Bankruptcy should remain a solution of last resort. Many consumers find themselves in dire straits because of budget- and credit-management problems. Bankruptcy may provide a fresh start, but without a change in borrowing and spending habits, you risk finding yourself back in the same situation facing the same problems.