Consult with Your Attorney

• If you are considering bankruptcy it is essential to hire an attorney before making your move. Consulting with a qualified bankruptcy lawyer will help you understand your rights and responsibilities under the bankruptcy law, and your attorney may be able to point out some things you may not have thought of.
  
  

Attempt to Work With Your Creditors

• Before you consider bankruptcy it is important to at least attempt to work with your creditors--either on your own or through the services of a credit counselor. Start by making a list of everything you owe, including the name of the creditor, the amount you owe and the interest rate. Then contact each creditor on the list and ask to speak to a supervisor or manager. Try to bypass the front line employees if you can--they may not have the authority to change the terms of your debt or adjust your interest rate.
  
  

Understand New Bankruptcy Laws

• While bankruptcy can still provide a fresh start, the new bankruptcy laws mean that fewer consumers will be able to simply walk away from what they owe. Those whose incomes fall above a certain level may be asked to pay back a larger percentage of what they owe, and it is important to understand how these laws may affect you and your situation.