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Seven Things You Should Know Before Filing for Bankruptcy

Are your unpaid bills piling? Are you getting an overdraft after another? Do you get calls from your creditors? This can cause lots of stress anxiety or even worse. Filing for bankruptcy is a legal process that can help overwhelmed folks find answers to their debt issues. However, Presented here are the things that you should know before filing for bankruptcy.

Know Your Debt

Before you determine whether you should file for bankruptcy or not you should know how much debt you owe. In most cases, people avoid reviewing their credit card statements and end up owing a lesser amount than they imagined. Those with debt find much relief after declaring they are bankrupt. However, it’s not the ideal solution in most cases. Knowing the exact amount of your debt is a vital decision in making a sound judgment.

Check Your Income

Collect your paystubs, benefits, and documentation from whatever source of income you get. Reviewing this information will help you to determine your total monthly income. If you know the amount of money, you earn every month you can quickly decide whether to file for bankruptcy or not.

Don’t Transfer Assets

You don’t have to raise a red flag by changing the ownership of some assets or property just before filing for bankruptcy. The transfers may be seen as an attempt to hide some of your assets. If you are found guilty of trying to reduce your assets your right to discharge will be taken away.

Note Your Expenses

How much money do you spend every night? You should make a list of what you spend your money on like mortgage or rent payment, repairs, insurance, personal grooming, gas, entertainment to mention a few to find out how much money you are spending and where you are spending it.

Sidestep Credit Cards

You should avoid using credit cards if you are thinking about filing for bankruptcy. When you spend using credit cards when you are almost filing for bankruptcy the chances are that you won’t manage to repay the money that you are consuming. When you continue spending cash on your credit cards yet you are unable to pay you will end up complicating your case.

Avoid Touching Your Retirement Savings

When settling your debts, you should try as much as possible to avoid withdrawing funds from your savings account when you run out of cash. Its worth noting that your retirement funds are protected by bankruptcy laws and should never be used to repay debts. Before you think of withdrawing funds from your account, you should be aware of all the pros and cons involved otherwise you might break the law.

Seek Legal Advice

It’s difficult to accept that you require some assistance. Some folks ignore their finances for a long time, and they end up losing their homes or allowing the stress that comes with debt to ruin their marriage. It can be uncomfortable to speak with an attorney about your finances however it can help you to plan and save your assets.…

Tips for Filing a Successful Bankruptcy

BankruptcyBefore filing for bankruptcy, there are a few things worth considering. Moreover, following the right channels and available all the required information can help you qualify faster for bankruptcy so that you get time to fix your finances. Unfortunately, many people hurry with the filing process and end up losing privileges, hurting their reputation for things that they could avoid. Knowing what to do and not to might not be easy for you since you lack experience in the bankruptcy filing. Nevertheless, you deserve all the help you could get, and that is the purpose of this article. A few standard approaches for filing for bankruptcy exist. Follow these tips for filing a successful bankruptcy.

Go for credit counseling

The qualified and approved credit counselor will review your case and additional information provided to come up with a set of options available for you. You may need debt management planning before going ahead with the bankruptcy application. On the other hand, you could need additional steps to strengthen your case for filing for chapter 7 or an equivalent legal determination of your insolvency situation. An appropriate strategy for approaching your credit counselor is by doing it at least five to seven months before you get to the point of seeking bankruptcy as a way out of your financial mess.

Organize all related documents

You should gather every document relating to your debts and classify it accordingly as evidence, supporting documentation and other resources for helping you present a valid case for bankruptcy. The information you gather should show your income, expenses, debts, and assets such as properties and stocks. You should also have a way to show your financial dealings for several months before your bankruptcy. The importance of an early start is evident here because the number of months covered in your documentation affects the possible outcomes of your bankruptcy.

Pick a specific bankruptcy

There are many options for declaring your insolvency status. There is chapter 7 or 13 for most people, and your jurisdiction may have additional options or different ones from these main forms.filing for bankruptcy

Meet your creditors

Every debtor will have to meet their creditors after filing their case. Your role here is to remain cooperative with the creditors. Your attendance will be under oath, and it will have merit in court when you clarify the information offered in your documentation and other applications. The trustee handling your case expects you to comply with every step. Thus, avoid falling for the idea of skipping any of these meetings even when your creditors are not attending. You want to cover all your bases so that the court sees no malice on your part.

Cooperate with your trustee

The trustee assigned to your case will be notifying the judge whether there are assets to administer. The court relies on the trustee’s report before taking any legal action such as selling any of your property. The trustee will, therefore, need to gather and sell all your assets and will require information about your financial dealings. Failure to cooperate often causes a loss of ability to discharge leading to a failed bankruptcy claim.…