Considering Bankruptcy? 4 Steps You Should Take To Avoid Complications

It doesn't take much to end up in a financial tailspin. Unfortunately, just a couple of missed payments can make it difficult – if not impossible – to recover from. If you've reached the end of your rope, and the creditors are hounding you at home and at work, it's time to consider bankruptcy. Filing for bankruptcy protection will allow you to get out from under your debt so that you can start building a firm financial foundation again. If you've decided to file for bankruptcy, there are some precautions you should take. Here are four steps you should take that will help ensure your bankruptcy case proceeds without complications.

Speak to an Attorney

If you're in debt, and you're considering bankruptcy, you need to speak to a bankruptcy attorney as soon as possible. Bankruptcy can be a confusing process.  Unfortunately, making just one mistake in the filing process, or in the paperwork, could result in your case being dismissed. If that happens, you'll need to start the process all over again. To prevent problems with your case, you should have an experienced bankruptcy attorney help you through the process.

Document All Your Debt

When filing the paperwork for bankruptcy, you'll need to list the sources of your debt. Failing to list each creditor could leave you responsible for those debts. As soon as you know that bankruptcy is an option, start gathering documentation for each of your creditors, including names, account numbers and contact information. Once you've filed for bankruptcy, you'll need to contact each one of those creditors to inform them of the proceedings. At that point, the creditors will stop contacting you.

Avoid New Debt

After you've filed the bankruptcy paperwork, you need to avoid new debt. That includes applying for new credit cards, or making large credit purchases. In some cases, the creditors may be able to argue that you obtained credit knowing that you couldn't afford to make the payments. If they're able to prove that during the bankruptcy proceedings, you may be required to retain that portion of your debt, which means you'll need to continue making those payments.

Keep All of Your Assets

If you have assets, don't give them away. It might be tempting to give your personal property to family and friends for safe-keeping, especially if you're going to be required to liquidate your assets for the bankruptcy. However, if you're caught giving your assets away, your bankruptcy case could be dismissed.

If financial problems require you to file for bankruptcy, don't make mistakes that could jeopardize your case. The information provided above will help you avoid complications. For other questions and concerns regarding bankruptcy, be sure to speak to your attorney. 

About Me

My Real Life Crime Drama

I never even dreamed that I would be accused of a crime that I did not commit. I mean, stuff like that only happens on TV right? Well, at least that's what I thought until it actually happened to me. After being falsely identified by a witness, I found myself standing trial for a crime that I was truly innocent of. It was only with the help of my lawyer that I was able to prove my innocence and ultimately get back my good name. Watching my lawyer present my case to the jury, I must admit that I was impressed. It was in this moment that I knew just how special the legal system truly is. Today, I write this blog as a way of honoring the system that worked for me and to ensure that everyone has someplace to turn when dealing with legal issues of their own.