Are you considering filing for bankruptcy but have no idea where to even start? Understandably, you might be feeling overwhelmed, as filing for bankruptcy is a major decision that can cause some anxiety.
Our team at the Law Offices of Alexzander C.J. Adams is here to help! We’ve outlined vital steps to prepare for filing for bankruptcy and make it a smooth process.
1. Consult with a Bankruptcy Attorney
One of the most important steps you can take when preparing to file for bankruptcy is to hire a bankruptcy attorney. We’re not just saying this because we are bankruptcy attorneys. It truly is a crucial first step. Your attorney can help you understand the different types of bankruptcy, the eligibility requirements, and which type is best for you and your situation. An attorney can also explain the potential consequences of filing for bankruptcy and help you develop a plan to repay your debts and protect your assets.
2. Gather Your Financial Documents
Next, you must gather all of your financial documents. When we say “all,” we mean ALL of them. You need to pull together your income tax returns, pay stubs, bank statements, credit card statements, investments, other financial account information, and any documentation you have related to your finances.
Gathering these and having them on hand will greatly help your bankruptcy attorney. This allows them to quickly assess your financial situation, get the full picture of your finances, and help you determine the best option to get out of debt.
3. Create a Budget
Once you hire an attorney and gather your financial documents, you should focus on your current financial situation and set a budget. This includes tracking all forms of income and a complete list of your expenses. By doing this, you can identify where you can cut back on spending and save money to get back on track financially. Doing this before filing for bankruptcy will also show the court that you’re being financially responsible.
4. Stop Creditor Harassment
Are you getting calls from creditors or harassing letters in the mail? If creditors are harassing you, you can file an adversary proceeding with the bankruptcy court to put an automatic stay in place to stop harassment. This can help you avoid further stress as you work through bankruptcy.
5. Gather Key Forms of ID
In addition to your financial documents, you must gather other essential documents to prove your identity, including your Social Security card, driver’s license, and birth certificate. These documents will be required to file for bankruptcy. If these are not easily accessible, it’s essential to start gathering them as soon as possible to prevent delays in your bankruptcy process.
6. Attend Credit Counseling
As part of the bankruptcy process, you may be required to attend credit counseling before filing. This counseling will inform you about your options to get out of debt and help you develop a plan to manage your debt.
7. Determine Exempt Property
If you have any property that you believe is exempt from bankruptcy, you will need to gather statements to prove its value. This may include statements for your home, car, or retirement accounts. You can work with your bankruptcy attorney to determine what is eligible to be marked exempt. This is crucial if you are filing for Chapter 7 bankruptcy, where assets may be liquidated to pay off debt.
8. Prepare for the Bankruptcy Hearing
Once you file for bankruptcy, you will need to attend a hearing. Your bankruptcy attorney will help prepare you for this hearing, but some general tips are to make sure you arrive on time and bring all required documents.
By following these steps, you can increase your chances of a successful bankruptcy process and help reduce any stress or anxiety you are likely experiencing. And remember, your bankruptcy attorney is always here to help and answer any questions you have.
9. Accurately, Honestly, and Completely Disclose All Assets, Debts and Income to the Bankruptcy Court
Throughout the bankruptcy process, it’s essential to be honest with the court about your earnings, assets, and debts. While it might seem like it can benefit you by hiding some income, trust us – it’s not! Failing to disclose all financial information to the court, trustees, and your creditors can be considered fraud or perjury, landing you in legal trouble. You could have to pay fines, your bankruptcy case could be dismissed, and you might even face criminal charges.
Hiding assets can also backfire. If you fail to list items, they cannot be protected throughout the bankruptcy proceedings by marking them exempt. These items can be liquidated to pay off debts.
Considering Filing for Bankruptcy? Let Us Help You
If you plan to file for bankruptcy, taking the proper steps is essential. Let our lawyers at the Law Offices of Alexzander C.J. Adams, P.C. help. We work for you, the people, and not institutions. Contact us for a free case evaluation or no-obligation consultation. We are dedicated to helping you overcome this minor bump and get on with your life.
