Steps To Complete Before Bankruptcy

The time period between deciding to file for bankruptcy and actually filing the paperwork is a crucial time.  What many people don’t know is that there are many important steps that should be completed before the process is initiated. These steps can prepare you for the process and ensure the best possible outcome.

Get Organized

Due to the highly detailed nature of the bankruptcy process, having all of your financial records organized prior to filing can be very useful. You will be required to provide detailed information about your debts, assets, income, prior taxes and bank information. Having all of this information collected and ready to go can greatly improve the efficiency of the bankruptcy process.

Schedule A Consultation

Although many people can successfully navigate the  bankruptcy process without representation, it is highly encouraged that everyone attend at least an initial consultation with a bankruptcy attorney. An attorney can review your financial information, ask important questions and determine whether you are a good candidate for bankruptcy. An attorney can also advise you of specific actions, such as filing your taxes, and documents that may be required on your part.

Freeze Your Finances

Many people do not know that there are rules regarding your spending habits prior to bankruptcy. If you continue to accumulate debt up until your filing, you may find that the court will not accept certain debts into the discharge. In general, it is  best to stop accumulating debt, spending large amounts of money and avoid selling any assets 3 to 6 months before you file for bankruptcy.