No More Hesitation Before Filing for Bankruptcy

Bankruptcy is a legal process which helps people and entities who are no longer able to pay their debts by either discarding the debt or arranging for repayment. Bankruptcy can also be the way some companies choose to terminate their business and liquidate all assets.

It is a fair way to re-emerge from mountains of unmanageable debt. For many it is a fresh start in life, leaving behind the financial hardships in the past. It is, however, imperative to understand that filing for bankruptcy is a fairly complicated process. You will need to follow a number of steps to prepare for the filing. We understand how trying the times of financial distress can be.

Our list has been compiled by competent bankruptcy attorneys to help you navigate the challenging water of a bankruptcy filing and build a solid, fool proof case.

How to Prepare to File For Bankruptcy?

1. Collect all your Bills and List Everyone You Owe

Gather all your bills and make a list of every debt you owe. Find pertinent paperwork that will assist authorities in gauging your financial situation. You should also get your credit report reviewed. If you are unsure how to, a quick google search will bring you several reliable credit report companies who will assay your report for you.

2. Cease Credit Usage

If you are filing for bankruptcy, it is wise to stop using your credit cards and/or loaning money at least 3 months prior to your filing date. Not only does the court review your purchases, but it is also a tad bit unethical. If you provide for your daily necessities using payday loans, make sure your attorney knows about it.

If it is absolutely necessary, you may use your credit card but make sure it’s only for necessities and not extravagant luxuries. Even then you can expect the court to justify your purchases.

3. Stop Paying Unsecured Debt

Leading up to the days to filing for bankruptcy, you should stop your payments to creditors holding unsecured debt. Credit card companies, medical bill agents etc. fall under this category. These bills are discarded once your bankruptcy is filed successfully, more importantly, do not pay more than $1000 to an unsecured creditor, even if they are family or friends within the 90 day period. Transfers and payments larger than the amount the creditor will receive owing to your bankruptcy are frowned upon in the courtroom.

4. Come Up With A Reliable Recovery Plan

It is true that Bankruptcy will show up on your credit report, but it doesn’t mean you can’t start over. For the initial few months, you will only be allowed low limit credit cards but soon enough, with sound money habits you will be able to restore a chipper credit report. Don’t forget to spend responsibly.

5. Find A Bankruptcy Attorney

Finding the right Bankruptcy Attorney is an important part of the procedure. Renaeu Law Group, Oklahoma City will be right by your side when the going gets tough. From filling out forms to running interference with your creditors, we don’t leave you to fend for yourself. It is our duty to provide the highest quality of legal representation to our clients. Contact us today to file for bankruptcy from as low as $300!

**Disclaimer: The above article does not imply a relationship between attorney and client, nor does it aim to provide any legal advice.