Filing bankruptcy is a legal process for people who can’t afford their debt any longer. It stops any foreclosure and any legal action against you and will prevent any creditors from contacting you any longer. Before you take that big step to file bankruptcy, we have a few tips for you to keep in mind:
1) Hire a lawyer.
If you are contemplating filing bankruptcy, the last thing you want to do is to go into this process without legal representation. Hiring a lawyer means someone is there to help you navigate the legal system and prepare any necessary legal documentation. Lawyers may be expensive, but they are worth the cost. Filing bankruptcy on your own increases your risk for making a mistake and your case being dismissed.
2) Avoid large purchases and cash withdrawals.
Resist the temptation to rack up charges for up to 90 days before you file. Avoid any large purchases and avoid withdrawing a large amount of cash. The reason is creditors can object to your bankruptcy discharge if you do so.
3) Don’t touch your retirement account.
It may be tempting, but avoid dipping into your retirement account. First of all, your retirement funds are protected assets in bankruptcy. Plus, it will be a waste if you use this money to pay towards debts that will be later wiped out. Not to mention, paying some debtors and not others while filing bankruptcy is not allowed under the bankruptcy code.
4) Gather any necessary paperwork.
Before you speak with your attorney, get all of your bank statements, income tax information, and any documentation about assets. This paperwork will help determine whether you are eligible to file. Also, make sure to save any collection letters and other communicators from your debtors. Keep in mind, though, that not all debt is covered by bankruptcy, such as student loans, tax debt, alimony payments, and child support.
5) Pay attention to your mail.
Once you begin the process of filing bankruptcy, the court will be sending you letters in the mail. This information will confirm appearances you will need to make in court as well as any important updates about your case. So, check your mail regularly. Filing bankruptcy is a stressful process. When you meet with your bankruptcy lawyer, don’t be afraid to ask questions to make sure you comprehend what you are about to go through. Contact Marcus Gomez, Attorney at Law, and schedule your free consultation with us today.