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Before Filing for Bankruptcy, there are things you should handle.

Before Filing for Bankruptcy, there are things you should handle.

When you are looking at bankruptcy as the option to help you settle your debt, taking initiative before going down this route can improve the process and the final results that you receive. If you intend to file bankruptcy, there is a great deal of preparation that goes beyond just filling out the grueling paperwork. What you do, or don’t do, prior to bankruptcy can have an affect on your bankruptcy’s success. Some actions or financial transactions can have a severe, irreversible impact on your bankruptcy filing. If your case is handled correctly then a bankruptcy can provide much needed benefits that you may be unable to obtain through any other option. If it is not handled correctly then the case may not be as successful as it could be. Some valuable steps that should be taken prior to filing are as follows:

  • Speak with an attorney: Talking with a professional about your case from the beginning is one of the most important steps that you can take. A Minneapolis bankruptcy lawyer will be able to review your case, assess the details and use their experience and knowledge to determine an effective plan. Having represented many of these types of cases has enabled them to know what to look for and how to take action. They can guide your case in the right direction, setting you down the right path from the beginning.
  • Avoid using credit cards: When you are out of money and are faced with debt, it can be tempting to turn to your credit card as a way to pay for finances. Before you do, think about if you really need this item or if there is another way that you can pay for it. Racking up more credit card debt only hurts your situation and puts you further behind. Speak with your attorney when making this decision to determine if you are fine to use a credit card or if there are certain items where it is ok.
  • Avoid debt: Credit cards aren’t the only type of debt even though they are a major source of one. There are many ways that we can fall behind and at this point you want to make every effort to avoid this. It’s not the best time to be making major purchases or getting anything that you don’t truly need.
  • Keep paying bills: Some people assume that since they will be filing for bankruptcy it means that they can drop the current expenses that they have. Rather, it is better to continue paying on the debts that you owe and to show that you have made a valid attempt to pay these expenses.
  • Don’t pay friends and family back just yet: You may have borrowed some money during a hard time and are wanting to pay it back before you file. This money may actually be considered in the case so it is best to wait before you pay anyone back.
  • Don’t transfer assets: Don’t start moving around your assets and changing your situation. The court will be looking deep into your situation and any changes could play a role in the case. Keep things as they are and wait until your case is complete before making bigger adjustments or transfers.
  • Tell the truth: Lying or bending the truth in a bankruptcy case will likely come back to hurt you. Since these cases can gain a lot of attention, something that you hide is likely to come out at some point. Failing to let your attorney know a detail can leave them unprepared and if the court learns that information was withheld or bent then this can impact the case.

For a better understanding of what you can do to prepare for bankruptcy and for representation throughout the process, get in touch with a Minneapolis bankruptcy attorney by calling us today for a free consultation of your case.