If you are having financial struggles and unable to pay back your debt, the thought of filing for bankruptcy might have crossed your mind. There is a lot more to bankruptcy than you probably imagine, so it helps to learn everything there is to know first. Here are some important things to understand about filing for bankruptcy.

It is not a fast process

The first thing you should know about filing for bankruptcy is that is not a fast process and will not be done overnight. There is a lot involved in bankruptcy, from choosing the right bankruptcy to getting your application approved. The courts will need to go through your income and debts and decide who to send payments to, which can take quite a bit of time. If you are just looking for a quick way to get creditors off your back, bankruptcy might not be for you.

You could face penalties for not being upfront

When you go through bankruptcy, your entire financial situation is open to public scrutiny. Your lawyer won't be the only one that sees what your income and debt is. You will be attending meetings with creditors and possibly need to discuss your financial struggles with friends and family. You should be prepared to do all of that and be honest with your finances. If you do not include a certain stream of income on your application for bankruptcy, it could mean some harsh penalties. This doesn't mean bankruptcy is a bad decision to make, but that being honest is absolutely crucial.

Getting a lawyer is highly recommended

While there is no rule that says you have to get a lawyer, it is definitely a good idea. The application process can be complicated and you may need to deal with the court system multiple times. A bankruptcy lawyer will be there with you every step of the way, from helping you decide on what type of bankruptcy to file, to dealing with creditors and paying back debts through the bankruptcy process.

You get a fresh start

One of the best things about choosing bankruptcy is that you feel like you get a fresh start. Once it is all said and done, you won't have much debt left and you can start rebuilding your credit again. If you are overwhelmed with debt and just don't know how you can handle paying it all on your own, talk to a lawyer (like those at Morrison & Murff) about filing for bankruptcy.