<br/>It's never great when someone needs to file bankruptcy. Personal bankruptcy is a stressful and potentially embarrassing time for many people. Don't give into it and be sure to use this advice to figure out what you need to know to avoid bankruptcy. <br/> <br/>Make certain that you comprehend everything regarding personal bankruptcy by studying online. The United States DOJ, the NACBA, and the ABI all have useful information. The more you know, you can be confident you are choosing the right thing and that you are taking the right road to make sure your bankruptcy proceeds as easily as possible. <br/> <br/>Instead of jumping into a bankruptcy filing, be sure your situation requires it. Look into credit counseling to see if it could help you work out of your debt without bankruptcy. Bankruptcy is a permanent part of your credit, so before you make such a big decision, you might want to explore all other choices so that your credit history is affected as minimally as possible. <br/> <br/>Honesty is of utmost importance during your filing, even though it may be tempting to "pad" your answers a little. Don't hide income or assets from your lawyer or the bankruptcy trustee or you may find yourself in legal trouble. <br/> <br/>Be sure to weigh all of your options before deciding to file for personal bankruptcy. For example, if your debt is small, try a type of consumer counseling program. It is also possible to do your own debt negotiations; however, be sure to get everything in writing. <br/> <br/>Consider filing using chapter 13 bankruptcy. If you currently have some income and don't have more than $250k in debt, you can declare bankruptcy. That kind of bankruptcy allows you to hold on to your personal things and real estate while repaying your debts with a plan to consolidate your debt. The plan is usually for a term of three to five years, and a discharge will be granted at the end of that term. Keep in mind that even missing one payment can be enough for your whole case to get dismissed. <br/> <br/>If concerned about keeping possessions like a car, find out if your attorney can reduce the payment. Sometimes, as part of the bankruptcy filing, your auto loan can be restructured so that you pay less each month. The car loan must have been initiated prior to 910 days before your petition. It must carry a loan with high interest. You should also have a steady history of work. <br/> <br/>Before you decide to file for Chapter 7 bankruptcy, consider how it could affect other people on your credit accounts, such as family members or business partners. You may have your responsibility for your portion of the loan discharged under Chapter 7. So, in short, if you file bankruptcy, but they do not, they will be held completely responsible for your joint actions. <br/> <br/>Clearly, bankruptcy does not need to be inevitable. The information contained in this article can help you to avoid having to file for bankruptcy. You can turn your life around and protect your financial position if you make use of wise bankruptcy advice like the suggestions presented above.