Before you go bankrupt, it’s important to consider all your options. You should take the time to learn about bankruptcy laws, because they vary from state to state. The paperwork can be a nightmare to navigate if you don’t know what you’re doing, and there are often legal elements to bankruptcy that the common person isn’t even aware of. However, it can be difficult to get the answers you need without a financial adviser of some sort. There are many factors to take into account, and it’s hard to know which decision is the right one to make.

Many people don’t realize that the person filing is not in control of the chapter of bankruptcy that is chosen. Rather, the decision as to which chapter can be filed is up to the courts, not the person filing. If you aren’t careful to educate yourself, you can end up paying quite a bit more for the proceedings than you originally intended, leading to a real mess. An adviser can help you navigate the legal maze that is often associated with filing bankruptcy, allowing you to come out ahead for the first time in years.

If you’ve been trying to decide whether or not to go bankrupt, it may be wise to learn a bit about your alternatives. You might be able to take out a loan, sell off assets, or consolidate some of your credit cards. You might be able to take an aggressive approach to debt repayment and get out of the mess you’ve found yourself in. While these alternatives might be inconvenient, they’re also less expensive than filing bankruptcy.

Thinking about bankruptcy can be overwhelming - especially when you start weighing in on how much it might cost. If you’re in the process of deciding whether to go bankrupt or not, it might be wise to find an adviser to help you work through the pros and cons of your decision. Qualified advisers are often available for free, and can help you decide on the right choice for your individual financial situation. If you’re tired of the financial stress, and are just looking for a way out, don’t jump to a conclusion of bankruptcy. Instead, consider consulting a financial adviser to help you make the right decision.

Credit Counseling
If you're not disciplined enough to create a workable budget and stick to it, can't work out a repayment plan with your creditors, or can't keep track of mounting bills, consider contacting a credit counseling organization.

Many credit counseling organizations are nonprofit and work with you to solve your financial problems. But be aware that just because an organization says it's "nonprofit," there's no guarantee that its services are free, affordable, or even legitimate. In fact, some credit counseling organizations charge high fees, which may be hidden, or pressure consumers to make large "voluntary" contributions that can cause more debt.

Most credit counselors offer services through local offices, the Internet, or on the telephone. If possible, find an organization that offers in-person counseling. Many universities, military bases, credit unions, housing authorities, and branches of the U.S. Cooperative Extension Service operate nonprofit credit counseling programs. Your financial institution, local consumer protection agency, and friends and family also may be good sources of information and referrals.

Reputable credit counseling organizations can advise you on managing your money and debts, help you develop a budget, and offer free educational materials and workshops. Their counselors are certified and trained in the areas of consumer credit, money and debt management, and budgeting. Counselors discuss your entire financial situation with you, and help you develop a personalized plan to solve your money problems. An initial counseling session typically lasts an hour, with an offer of follow-up sessions.