Fear and desperation often lead people to make mistakes. Some people take the time to trim down their expenses in an effort to get caught up on their payments. Others freeze and end up ignoring the problem. Debt can easily spin out of control to the point where monthly obligations are difficult to meet.
If you find yourself in a situation where you are unable to keep up with your bills, it may be time to consider bankruptcy. First, conduct a little research to make sure that you don’t make any mistakes in this process.
Take The Right Steps
Once you decide that bankruptcy is your best option, there are a few things you’ll need to do to prepare to file and some actions to avoid:
• Hire a Professional: An experienced bankruptcy lawyer will help you from ending up in an even worse situation. They will guide you in deciding what chapter of bankruptcy you should file. An attorney will gather the necessary information needed to conduct the means test.
They will also inform you of what documents you’ll need to locate. Often by supplying you with a worksheet and checklist. A bankruptcy lawyer will also utilize any available exemptions you may qualify for to protect your property, helping you land on your feet.
• Think Before Making Changes: Do not make the mistake of omitting property from bankruptcy paperwork. The same goes for transferring it to a friend or family member in order to protect it. The court will look at your financial situation; any attempt to hide property could be seen as fraud.
You will have to avoid making large payments to a single creditor. Doing so is seen as making preferential payments. The court will decide who will get paid and what amount is to be paid as they look over your financial obligations.
• Take Quick Action: If you end up waiting too long to file, the damage could be worse than filing as soon as you realize your debt is out of control. Every time you miss a payment, it negatively affects your credit score. There may be late fees or worse, you could be sued by your creditor. As soon as you file, you can start to rebuild a positive credit history.
The Next Step – Contact An Attorney
It’s time to take a step forward in regaining control of your financial future. I’m here to help you along the way and to make sure you don’t make the same mistakes others have made. In order to gain greater knowledge in this matter, feel free to contact me for a bankruptcy consultation. I will be happy to talk with you and lead you down the road to a stable financial future.