10 Things You Should Know Before Filing for Bankruptcy

If you're struggling to pay your bills and thinking about filing for bankruptcy, there are a few things you should know before taking that big step.

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Are bills piling up while you're out of work and stuck at home because of the COVID-19 pandemic? Are you thinking that filing for bankruptcy might be a good way to fix your financial situation? If so, you're not alone.

Bankruptcy is a legal process that can help people like you who can't pay their bills. It allows you to wipe out your debt and get a fresh start. Filing for bankruptcy will also put a halt to foreclosure or legal actions against you, and it stops creditors from calling and demanding payment. This "breathing space" is one of the most desired benefits of filing bankruptcy.

But there are a few things you should know before you take that giant step. Bankruptcy won't solve all your problems. You'll need help, and it can be a long (and costly) process. There are other important considerations, too. So, to help you figure out the best path for you, here are 10 things you should know before filing for bankruptcy.

Contributing Writer, Kiplinger.com
Diane has more than 12 years of experience as a writer/editor covering bankruptcy topics for Bloomberg Industry Group (formerly Bloomberg BNA). Overall, she has more than 20 years in the legal publishing field, including stops at Kleinrock Publishing and Tax Analysts covering tax developments. She has a BA in English from George Mason University in Fairfax, Va., and a Juris Doctor degree from George Mason University's Antonin Scalia Law School in Arlington, Va. Diane practiced law in Virginia for four years before joining legal publisher Federal Publications, Inc., as an editor.