Bankruptcy lets you to formally certify that you are unable to repay your debts now, and will not ever be able to. Declaring bankruptcy is a serious thing. For certain folks, there are other avenues to get out of debt, such as debt consolidation or possibly speaking and bargaining with your lenders. But, if bankruptcy is your only option, you should prepare yourself in order to come away from the experience in the best light possible. You should seek a financial specialist to help you. However, before you take any action, the decision must first be made if bankruptcy is the correct decision for you.The first thing you need to do is educate yourself as much as possible about the bankruptcy process. You will learn that chapter 7 and chapter 13 are the two types of bankruptcy that can be filed for individuals. Other alternatives exist for businesses.You should study the two options to learn the differences in the way they operate. If you choose bankruptcy, you need to know what is required of you and what your lender will want.After you have studied bankruptcy options, you will want to take one last look at any other options you may have..Debt consolidation may look more doable after your analysis, especially if your main financial problem is credit card debt.You could also try contacting your lenders and work out a deal. The fact is that there are many debt relief options out there, so make sure you do your due diligence.The next step is to know the eligibility requirements for declaring bankruptcy. If your debt is too high and your income too low, you most likely won’t qualify for chapter 13 bankruptcy. However, if your income is too high and your debts too low, you most likely won’t qualify for chapter 7 bankruptcy. It might be a case where you don’t qualify for either one, meaning that you did research your other options thoroughly enough.Think about all of your assets and debts if you do qualify. What will become of your house? Your auto? Your IRA? Each state has various specifications when it comes to these things, so be certain that you comprehend how your assets will or will not be liquidated..Now is also the time to make a list of your capital and a list of all your debts. Keep in mind that some types of debt are ineligible to be wiped clean, such as child support.After all your information is compiled, you can start the process of declaration.. The best thing is to work with an attorney or financial professional to get this done, and be mindful to be completely honest. Declaring bankruptcy is not for everyone, but it can be a life line for some people.