Before Filing Bankruptcy: Things You Need To Do

Deciding to file for bankruptcy can be a difficult choice to make. While it certainly offers a way out from under crushing debt, the resulting problems with your credit report, the ethical implications that many struggle with, and the simple matter of whether or not your will qualify can hang like a dark cloud over your head. However, if you’ve come to decide that you want to file, there are some things you must do first. These things will keep you from repeating your past mistakes, keep you out of trouble with the law, and ensure that your filing goes through without a hitch.

Whether or not you have made the decision to file for bankruptcy, you should immediately stop using your credit cards and begin paying for your purchases with cash. If you are unable to do so due to outstanding bills and a lack of viable income, then you know for certain that filing is your last and possibly only option. If you do not need those cards to pay bills, then it’s probably time to cut them up and go on a cash system. Certainly, any expenditures that are unnecessary and can’t be paid off by the end of the month need to go.

If you are still hesitant about filing for bankruptcy, see what you can accomplish on your own. Many creditors will be happy to work with you if you let them know your financial situation. They won’t be in the habit of loan forgiveness, but they may be able to work out an alternative payment plan that fits your needs in a better way. If you have reason to believe that your current financial troubles are only temporary (for instance, you’re starting a new job next month), you may be able to defer payments until later in the plan. Reach out to them and see what they say. The worst they can tell you is, “no”. 

If you have decided to file for bankruptcy, you need an attorney. Some people will tell you otherwise, but those are not people who have been in your situation. Just because something can be done doesn’t mean that it should be done. A good lawyer can make sure you have your paperwork in order, they can sometimes aid you in getting creditors off your back while the filing process is in motion, and they can advise you on the best way to get back your financial footing.