How Should I Prepare for Bankruptcy?

When you are considering bankruptcy, it is helpful to understand how you can best prepare for filing. You do not need to be hasty, and in fact, you will want to ensure that you follow some steps that will help make the process easier and less stressful. An experienced bankruptcy attorney will assist you through the process.

Review Your Budget

One of the first things you need to do before you decide to file bankruptcy is to become completely aware of your budget. You need to see what your income and expenses are so you can make an educated decision moving forward. Depending on your specific information, you may qualify for Chapter 7 or Chapter 13 bankruptcy. Both types allow you to resolve your finances and start to begin anew.

Learn About Bankruptcy

Before you can make a decision to file bankruptcy you want to learn as much as you can about it. There are two main types of consumer bankruptcy, including Chapter 7 and Chapter 13.

Be sure that you obtain information from a qualified source. A knowledgeable bankruptcy attorney will answer your questions and help you with the steps of the process. Be wary of information you find online unless it is from a reputable place.

Review Your Bank Accounts

While you do not want to make any major changes to your finances during the time leading up to a bankruptcy filing, you should review your accounts. Specifically, if you have checking or savings accounts with the same bank as you have a loan, you may want to change that. During bankruptcy, a bank may be able to freeze an account in order to seek a setoff for a loss. Therefore, make sure your funds are safely in a separate bank. However, before making any changes, get input from your lawyer.

Gather Paperwork

Start to gather all your financial paperwork. Make a list of your loans and credit accounts. Then, print out current information regarding the balances, interest rates, and payments. You will need complete details for all your accounts, as well as your income and any payments you make on a regular basis. You will need to provide full disclosure of your finances, including all your creditors when you file bankruptcy. You may be allowed to keep some or all of your assets, depending on the type of bankruptcy for which you qualify.

Get Credit Counseling

Credit counseling is a way to assist you with your financial concerns. Importantly, credit counseling is a requirement for bankruptcy. The goal is to learn how to better handle money so that you can avoid bankruptcy in the future. While it may not help you with your current situation, you will need to know what to do after you get a fresh start.

Talk to a Bankruptcy Attorney

A bankruptcy attorney will review the details of your finances and provide you with options. You can choose whether to file bankruptcy and if so, which type of bankruptcy is best in your situation. Everyone is different, so there is no one solution that is right for everyone. If you are considering bankruptcy, we can help. Call us today at Adam Law Group at (904) 822-7988 to schedule a consultation.