Should You Go It Alone?

• Be honest with yourself -- do you have the ability to handle your bankruptcy on your own? Thanks to DIY bankruptcy kits developed by companies such as Nolo.com, the procedures for filing bankruptcy is easier to follow. However, you'll still have to expend much time compiling and submitting documents, getting forms notarized, contacting creditors and sending your documentation to court.
  
  You will also have to appear in court to have your case heard and hope that the judge rules in your favor. Even so, you may need to have an attorney present to preserve your rights as well as explain what is required of you post bankruptcy. You may save some money up front but lose much more down the line if the court rules that certain debts are still your responsibility, bankruptcy filing or not.
  
  

Acquire Information

• As you plan your DIY bankruptcy, find out what your options are. A prepackaged kit may be fine, but what if you need the advice of an expert? Can you pay someone a fee to answer your questions? You'll be required to attend a credit counseling class as part of your bankruptcy filing, something that will be part of your bankruptcy petition.
  
  Obtain copies of your credit reports and related credit information to see who you owe money to. As instructed by Nolo, "If you fail to list creditors, the debts you owe them may not be wiped out by your bankruptcy discharge. So, be sure to list every person who claims that you owe them money -- even if you don't think you owe them a cent." Clearly, rushing through the bankruptcy process could lead to committing mistakes which could cost you dearly later.
  
  Among the forms you will need to work with are ones detailing your current personal property and its value, claimed exemptions, with secured and unsecured debts to help set a schedule to pay off or discharge your debts.
  
  

Assemble a Plan

• Once you decide upon DIY bankruptcy, create a game plan to get everything done. Set aside time to fill out forms, submit documentation, meet with your creditors, take your bankruptcy class and complete your bankruptcy filing. Within sixty days of your creditor hearing you'll receive your formal "Notice of Discharge" which means your bankruptcy is behind you and a chance to start over again awaits.
  
  

Types of Bankruptcy

• Please note that the procedures for DIY bankruptcy will differ depending on whether you file under Chapter 7 (liquidation) or Chapter 13 (restructuring) of the U.S. Bankruptcy Code. Chapter 11 is for businesses; consult an attorney for the best course of action for you to take.