Things You Must Have In Order Before Filing Bankruptcy
Life after a bankruptcy may be quite challenging. Your financial options become very limited. But remember that there is always a way out of a situation you are in, so do not let bankruptcy scare you.
A huge mistake people make before filing for bankruptcy is maxing out their credit cards. This can lead to disaster when you file and the credit card companies might not discharge the debt. If you can, you need to stop using your credit cards at least six months before you file, and ideally for a year prior. Also, do your best to pay the minimum payments on these cards for at least six months before you file.
In any personal bankruptcy filing, it is essential to make certain to list all elements of your financial life in your petition and other paperwork. Failing to include all income sources or omitting individual debts and accounts can lead to substantial problems down the road that can limit the dischargeability of some of your most substantial obligations.
Find out the real reason you are filing for bankruptcy. What happened in your life that brought you to this place? What do you need to do to make sure that you can move on? What actions do you need to take before you can be sure that this will never happen again?
Make a detailed list. Every creditor and debt should be listed on your application. Even if your credit cards do not carry a balance at all, it should still be included. Loans for cars or recreational vehicles should also be included on your application. Full disclosure is imperative during this part of the bankruptcy process.
Filing for bankruptcy does not wipe out all of your debts. It does not stop you from having to pay alimony, child support, student loans, tax debt and most types of secured credit. You will not be allowed to file if these are the only types of debt that you have on record.
Before you consider filing for bankruptcy, you should make a pre-determination if bankruptcy may be the right choice. First, make a list of all income, including, salary, child support, alimony, rent and any other sources you may have. Then, make a list of your bills. These would include mortgage, rent, car payments, monthly credit card payments, groceries and gas. If your monthly bill total is more than the income you bring in, it may be time to seek the advice of a bankruptcy attorney, who can help you make the final decision.
If you are unsure about the paperwork that you need to bring with you when you meet with an attorney, ask. Also, inquire as to whether the lawyer you are meeting with offers free consultations. You do not want to be surprised by a large fee just for them taking a look at your case.
You now must realize that filing bankruptcy with not limit your life forever. By becoming more of a financially responsible individual, creditors will get the picture that you’re trying to dig yourself out of a hole. So begin saving your money and you will realize how much difference it makes when shopping for a home loan or car.