When you are so far in debt that you don't see any possible way that you will be able to get out of it, there are things that you can do in order to get out. One thing that you can do is to consult a chapter 7 bankruptcy lawyer to see what the process to filing for bankruptcy would be. There are several things that you are going to have to do when you are filing for bankruptcy, so knowing what you need beforehand will be really helpful for you. So, what are some of those things?
Full and Complete Debt Record
One thing that you need to do is to show the lawyer the full and complete record of your debts. They are going to need to see everything that you owe, even if you think it's unimportant or embarrassing. The lawyer will have to see everything. There are several reasons for that. One is that they will be able to tell you what debts are and aren't covered by the bankruptcy. As part of the bankruptcy process, your lawyer will also negotiate with the creditors who are holding the debts that are covered by the bankruptcy in order to arrange payment.
Full and Complete Income
You are also going to have to show the lawyer your full income. That means every source of income that comes into your house, including child support, spousal support, tips, freelance pay, if someone is paying your rent or mortgage, etc. If you get occasional monetary gifts from family or friends, you should tell your lawyer about that money, but if it only happens every now and again and isn't something that you count on regularly, then that money might not count as income. Your lawyer will be able to help explain that to you.
Another thing that you are going to need to do or show the lawyer that you have already done is to get some credit counseling. A credit counselor will be able to help you figure out how to pay your bills on the income you have. The credit counselor will also be able to you deal with your creditors to get see if you can reduce your debt in any way.
If you are worried about how much you owe and are pretty sure that you are never going to be able to get out of debt, bankruptcy may be your only choice.