4 Ways to Prepare for Bankruptcy
Posted on: 18 August 2021
Falling into debt can take many years for some people, but it can take only a few months for others. In any case, you may want to turn to bankruptcy when you reach a point where you cannot pay your bills. If you have too much debt and not enough income, bankruptcy might be the best way out of debt. If you decide to use bankruptcy, you may need to prepare for it, and here are four ways you can prepare.
1. List and Gather All Your Debts
The first thing to do to prepare for bankruptcy is to list and gather all your debts. When using either Chapter 7 or 13, you must know how much money you owe and the creditors' names. In fact, when you visit a lawyer, the lawyer will even look up your credit report to see what it contains. Your credit report may contain some of the debts you owe, but you might also have others. It is vital to know all your debts before filing either branch.
2. Visit a Bankruptcy Lawyer
Once you have this information, you might want to schedule a visit with a bankruptcy attorney. When you schedule the visit, the law firm will tell you to bring the list of debts to this visit. They might ask you to bring other things, too. Attending a meeting with a lawyer is the best way to find out if you are eligible for bankruptcy and your options.
3. Stop All Your Automatic Payments
Another good step to take before filing for bankruptcy is to stop all your automatic payments. Many people set up their bills to automatically come out of their checking accounts. If you have bills that automatically get paid from your account, you need to stop these before filing.
4. Complete a Credit Counseling Course
The final thing to do is to complete a credit counseling program, and your attorney will tell you how to do this. This program teaches many things about finances, debts, and bankruptcy. It also teaches you more about the alternatives to bankruptcy, and taking this course is a requirement for anyone who files for bankruptcy.
A bankruptcy lawyer can assist you with these steps and others. If you decide you want to file for Chapter 7 or 13, talk to a lawyer to learn more. You can contact a bankruptcy firm in your area to speak with a bankruptcy attorney.
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