Things to do before you file bankruptcy

On Behalf of | Jan 30, 2023 | Bankruptcy |

Filing for bankruptcy is a significant decision, especially when you have concerns about the lasting effects on your credit. Unfortunately, many people are unfamiliar enough with the bankruptcy process that they make mistakes as they prepare to file.

There are a few things you can do before you file to simplify the process.

Make sure bankruptcy is the right choice

Take time to think about the process and the long-term effects. Explore the different bankruptcy options to find the one that is the best solution for your budget.

Establish your long-term plans

When you decide that bankruptcy is the right choice, take time to consider the plans for rebuilding your credit. Create a long-term budget to help you not only meet your bankruptcy payment schedule but also restore your credit rating.

Clarify the legal process

Familiarize yourself with the legal procedures for bankruptcy. The more you understand about the paperwork and the court process, the easier it is to complete the entire process in a timely manner and meet the deadlines.

Gather all of your records

You need the most recent copies of account statements from each of your creditors as well as documentation of each asset. These are important elements of your bankruptcy case assessment as the court needs to know how much debt you have and what assets you may be able to liquidate.

Financial mistakes can happen to anyone and can leave you feeling overwhelmed. Bankruptcy is an opportunity to get a new start when you are in over your head.



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