Menu

Understanding What Bankruptcy Really Means


Getting Ready To File For Chapter 7 Bankruptcy? 3 Things To Understand

Getting out of debt can be challenging, and sometimes that debt can be overwhelming, which is where Chapter 7 bankruptcy comes into play. With Chapter 7 bankruptcy, you are going to be able to get out of that debt. Before you file for bankruptcy, there are some things you need to do.

1. Find an Attorney

First, you are going to want to find an attorney. Although you can indeed file for bankruptcy on your own, that is not the best path to take. Filing and working through the bankruptcy process is complicated, and a slight mistake could get your case thrown out.

If you can afford to get on a payment plan with an attorney, that is always an advisable step. 

As you are struggling with money, it is essential to note that there are legal aid organizations that you can work with as well. They will you with legal assistance throughout the bankruptcy process if you choose to file on your own.

2. Stop Adding to Your Debt

Second, when you know you are planning on filing for bankruptcy, you need to make sure you are not adding to your debt. Adding to your debt is going to look poorly in the eyes of the court. 

It is okay to keep up with regular behavior; for example, if you typically use a specific credit card to pay your bills and pay that card off with each paycheck, you can keep up that behavior. 

What you shouldn't do is go and purchase a new vehicle or open a new credit card or max a card out to its limit. You don't want to look like you are purposely trying to get things for free by running up your debt.

3. Get Your Documents Together

After you file for bankruptcy, you will eventually have to go in for a 341 meeting. You are going to need to bring your financial information to this meeting. You will need to bring in things such as your bank statements, pay stubs, and tax returns. You will want to get all those documents together ahead of time so you are prepared when you get the appointment. 

You are also going to need to provide information about who you owe money to. Get that information, as well as current balances, together as well. 

If you are getting ready to file for bankruptcy, you will want to obtain a lawyer. You will want to get all your documents together that show both your income and your debt. You will also want to stop adding to your debt once you decide to file for bankruptcy. Contact a bankruptcy lawyer to learn more.

About Me

Understanding What Bankruptcy Really Means

When you begin making strides towards a healthier, more financially sound future, there are a lot of things that you can do to simplify the process for yourself. While paying down debt and working towards a simpler lifestyle can make a big difference, sometimes a bankruptcy is required to make things better. Bankruptcy will essentially clear the slate for you and your family, making it possible to move forward without worrying about heavy bills hanging over your head. On this helpful website, check out great tips and tricks that could make it possible to prevent problems in the long run, so that you can make things better.

Categories

Latest Posts

4 Ways to Find a Steller Bankruptcy Attorney
27 April 2021

Going through bankruptcy is a great way to get a s

Getting Ready To File For Chapter 7 Bankruptcy? 3 Things To Understand
21 April 2021

Getting out of debt can be challenging, and someti

What To Do If You Don't Meet Bankruptcy Criteria
30 March 2021

Within bankruptcy law, there are specific criteria

Wiping The Slate Clean: A Closer Look At Discharging Your Debt Through Bankruptcy
10 March 2021

Has your personal debt become so overwhelming that

How Chapter 7 Treats Your Debts
3 December 2020

Many people turn to Chapter 7 bankruptcy for debt