When Filing For Bankruptcy

If your debts have become overwhelming and you can’t get a hold of financial stability, filing for bankruptcy can be one way to get you back on track. Although the process can be tedious, knowing what to do before filing can help maximize your chances at a successful outcome.

The Know How

There are a few things you should do before you file for bankruptcy. First, examine your financial situation closely to determine whether any other form of debt management may help resolve your debts. If debt negotiations have failed and you want to avoid the hassle of other debt relief options, bankruptcy can be considered. Also, be sure to consult a bankruptcy attorney about your financial situation as they can better determine if bankruptcy is right for you and walk you through the process.

Filing for bankruptcy alone is difficult, but not impossible. However, there are some mistakes people often make before filing for bankruptcy that can jeopardize the outcome of the case. In general, it is best to freeze all unusual aspects of your finances at least 6 months before filing. This doesn’t mean to stop paying your bills, but refers to acquiring more income, selling off assets or making any large purchases. It is never advised to stop paying your debts completely, but paying them off before filing may disqualify you from the case. Any unusual spending habits, moving of assets or accumulating additional income could also disqualify you from filing or even lead to having your case dismissed without a discharge.