You can't see a future beyond your debt mountain. You have lost all hope. But don't because help is right here. If you are considering declaring yourself bankrupt well then you definitely must consider the following points before you do, because there is still hope. You need to pay attention to your money. Prepare a monthly budget, put down all the incomes against the expenses, and note the left over. Get your copy of credit report, which is available, free of cost. Note down any discrepancies, identify it to them. The way to get out of this is to settle your debts. Make affordable payments of your left over budget and divide it to pay on each of the creditors. Offer to settle some 30% each year to your due accounts. Talk to your creditors and offer them to pay on time every month for a longer period of time instead of nothing at all. Keep copies of all the communication. Pay your dues on time and you will within no time see yourself getting out of the need to be bankrupt.

Now since 17 October 2005, law has been passed that individuals need to obtain consumer credit counseling from a US approved entity. There are two main types of bankruptcy, a chapter 7 bankruptcy and a chapter 13 bankruptcy. Take help of a bankruptcy attorney while filling for bankruptcy. Make sure that you get answers to all your queries, which would help to determine which chapter is suitable for you. Also know how much would your lawyer charge. These days filling online bankruptcy is also a trend. Tell your creditors about your bankruptcy lawyer this would help you stop all the annoying calls. A meeting will be scheduled with your creditors called a 341 meeting. This meeting allows the trustee to ensure you have given truthful testimony on the BK petition and understanding of terms.

If you file for Chapter 7 bankruptcy, any assets can used to repay your debts, for Chapter 7 BK you never have to repay, and in case of chapter 13, you have to pay back in the time frame of 3 to 5 years.