Before 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.
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.