What Should I Do Before Filing For Bankruptcy?

Prior to filing for bankruptcy, an individual should find the right attorney and gather all of the necessary documents, including at least six months of paystubs, tax returns for the preceding two or three years, evidence of any real estate they own and the value of that real estate, proof of identity, their driver’s license, and their social security card. In 2005, the bankruptcy law changed to the Bankruptcy Abuse Protection and Consumer Protection Act (BAPCPA), and although there aren’t very many consumer protections involved, the law is the law.

Should I Sell My Things Before Filing Bankruptcy?

A person should not sell their assets before filing for bankruptcy; they should speak to an experienced bankruptcy attorney before taking action with any of their property. In some cases, bankruptcy can be planned. If there are some items of property that are not protected, there may be ways to protect that property. A transfer of property is not recommended because the trustee will be able to undo that transfer and take that property. This may result in potential fraud allegations, and ultimately prevent discharge, which is the whole point of bankruptcy.

Can I Load Up On Debt Just Before Filing Bankruptcy?

It is not recommended to load up on debt right before a bankruptcy if the intention is to simply have that debt eliminated. Doing so would be considered bad faith, which is something that creditors can use to claim that the debt owed to them should not be dischargeable under the bankruptcy code. If a creditor suspects acts of bad faith, then they may file an objection to the discharge of the bankruptcy, at which point the debtor would have to demonstrate that they intended to repay what they borrowed.

Should I Pay Back Any Family Or Friends That I Owe?

If preferential treatment is shown to family or friends through the act of paying them back but not paying back a creditor, then the trustee could take back that money and distribute it on a pro rata basis to the other creditors.

When Must I Complete The Pre-Bankruptcy Credit Counseling Course?

A case cannot be filed before the pre-bankruptcy course has been taken, which is valid for 180 days. If someone is speaking to an attorney who is making a long-term plan that may exceed 180 days, then they may want to wait to take the pre-bankruptcy course. In most cases, however, the pre-bankruptcy course should be taken right away in order to file for bankruptcy as soon as possible. When people attempt to handle bankruptcy cases without the assistance of an attorney, they often fail to take the pre-bankruptcy course, and as a result, their cases get dismissed.

What Are The Positive Life Outcomes That Your Clients Enjoy After Filing For Bankruptcy?

Life after bankruptcy is great for many of my clients. They’ve relieved themselves of the great burden of debt that was holding them down, keeping them up at night, stressing them out, affecting their relationships, and affecting their work. Having the relief of knowing that the debt has been wiped away is the best part of the bankruptcy and allows people to resume their lives and begin building their futures.

For more information on Things To Do Before Filing For Bankruptcy, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (877) 606-1222 today.