Preparing Properly For A Bankruptcy

Preparing to File Bankruptcy

The first thing our Law Firm would recommend if you are considering bankruptcy is to Contact an attorney. However, there are some things you can do before meeting with an Attorney to prepare for the bankruptcy:

1. Stop using your credit cards.
   If you borrow money with the intent of having the debt discharged under Bankruptcy Law, then the debt will not be dischargeable. You should consult an attorney before incurring any additional debt.
   
2. Don't make any large gifts of property transfers.
   Transferring property on the eve of bankruptcy can be considered a fraudulent conveyance, which could disqualify you from bankruptcy protection.
   
3. Consider which debts to pay.
   Some debts (such as rent, utilities, care and mortgage payments) must be paid currently. It's certainly a Bankruptcy Myth that paying large sums toward credit card accounts, that will be discharged, will help you in your bankruptcy hearing. The fact is, you are most likely wasting your money. Discuss any principle reductions or large payments on any debt with an attorney prior to paying a creditor.
   
4. Assemble important documents.
   Whether you are planning to file a Chapter 7 Bankruptcy petition, or you want to reorganize under a Chapter 13 Bankruptcy, be sure to put copies of documents that would be helpful in your bankruptcy into a folder or a box. Such documents would include copies of your current bills, a current paycheck stub and information on any property you own.
   
5. Relax.
   You're not the first person who needed the Legal Services of an attorney to get help with debt. Get ready for your fresh start so you can avoid mistakes you may have made in the past.