In the world of financial repair, bankruptcy remains one of the most significant and tempting options out there. Although there are certainly other options to be considered, a bankruptcy claim is the only way out for debtors that have exhausted the alternatives. Bankruptcy can also be attractive to those that no longer have much to lose in terms of personal assets, particularly when Chapter 7 is considered. Of course, I cannot tell you whether or not personal bankruptcy is the right choice for you. The only true way of knowing whether you might benefit from the process is to speak to a financial professional or a qualified bankruptcy attorney.

Although you will need to spend some time with a professional before deciding how to address your finances, there are some basic facts that can be discussed in the meantime. The following questions represent the most frequently asked questions when it comes to filing for bankruptcy protection –

1. How is the process initiated? – before filing for bankruptcy, you must first be qualified based on your current financial situation. Your assets and liabilities must be analyzed by the bankruptcy courts and you must also provide information related to your current household income. It is also mandated by law that you enroll in a debt management program, where you will be taught about staying out of debt and how to better manage your finances.

2. Can you file by yourself? – you can certainly file for bankruptcy alone, though it's recommended that you first consult with a qualified attorney or other financial professional. The right person can help you to evaluate your finances and can recommend a course of action. This person may even determine that bankruptcy is not the best option for you.

3. How will your credit be impacted? – perhaps the most significant consequence involving a bankruptcy claim is the negative impact that it will have on your credit score. Your credit will take a major hit that will last for up to 8 years. During this time you will find it extremely difficult to secure decent financing.

Although the questions above encompass some of the most common questions out there, there are many other things to consider before you claim bankruptcy. As mentioned previously, the best thing you can do is to speak with someone that is knowledgeable on the subject matter. Finding someone to talk to is just a phone call or web click away, so get out there and begin repairing your finances today.