Bankruptcy can be the biggest burden for an individual as well as a business organization. It is a condition where the business or the individual cannot meet the debt commitments and petitions. This condition may be voluntary or involuntary. Here are some points to consider before filing bankruptcy:
Know about bankruptcy and other options
Try to get all the details about bankruptcy to reduce the stress that is waiting for you in the process. Clear all your queries with the bankruptcy lawyer regarding your situation.
Stop using your credit card
Stop using your credit card if you are planning to file for bankruptcy. Charges and cash advances made within 90 days of filing the bankruptcy are critically scrutinized in bankruptcy cases. It is better if you stop using your credit card as soon as filing bankruptcy. According to law, a financially responsible person should know when to stop spending money that is not there, especially when you are planning bankruptcy.
Hire a bankruptcy lawyer with whom you are comfortable
You should learn to trust your lawyer completely. That is why, when you are choosing an attorney, you must have a good sense to judge character and trust your intuition. To find a trusted and good attorney, you can look for solo attorneys, small firms or family operated firms to find responsible lawyers. If you find an attorney who does the entire paperwork and review drafts, you can completely feel relaxed.
Organize your financial documents
It is quite obvious that you will contact a bankruptcy attorney as soon as you are planning it. But before you contact the attorney, you need to sort out few things. Sort out all required financial documents with all the required information to prove the amount of debt you are facing and the amount of money you have. Your bank attorney will then go through your budget to decide on the “disposable” or leftover income that can be paid to creditors.
Be ready to meet your lawyer
When you talk to your attorney for the first time, be sure to have all the required financial documents to answer all the queries of your lawyer. If you are already prepared with all information before your first meeting with your attorney, you will definitely find a more cooperative assistant in your lawyer.
Always remember, you must be honest throughout the process. Anyone who hides any assets or lies about any paperwork may face criminal charges. Again, you may not want to drag the process of bankruptcy for a long time. For this, be reachable whenever your lawyer needs any cooperation.
Keep records of all the creditors
This is also a part of your proper organization of the process. It is a must to keep a good record of all debts owed prior to your meeting with your bankruptcy attorney and to get a clear picture of where you stand.
Lastly, start a new life with a more responsible future credit
Bankruptcy should always be seen as a new start for a bright future with lessons learned. Try to learn from the credit counseling and debtor education classes that are must in cases in bankruptcy to know more about the steps needed to rebuild credit after bankruptcy.
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