In the first part of this blog series, we laid out a few of the reasons why transparency is important for those who are filing for bankruptcy. Because the court system doesn’t look fondly upon those who hide, alter, or offer false information, it’s important to practice complete transparency. However, those who are serious about preventing bankruptcy in the future should also work on creating good transparency skills now.
Transparency for Those Preventing
If you are trying to reduce the chances that you’ll be filing for bankruptcy in the future, then good transparency skills are one of the bankruptcy basics you need to know about. Should you ever go to court, certain documents will be required of you. Having these documents organized and on hand now will make your experience easier later on.
However, even if you never have to file for bankruptcy, practicing transparency can be a great way to improve your personal financial life. Right now, do you know where you can find your vehicle’s certificate of title, the lien to your home, or your latest records from the IRS?
Knowing where all of your essential documents are is the first step to practicing transparency. Secondly, you’ll want to organize all of your own financial information. Do you have consolidated records that show your assets, liabilities, income, and expenses? Are they viewable by month? By year? By quarter?
How detailed you need to be is up to you. However, the more clearly you can show your financial situation to someone else, the more benefits you will enjoy, both inside and outside of the bankruptcy process!