• By: The Law Offices Of Diane Anderson
  • Published: March 29, 2016

How To Prepare For Bankruptcy

If you are trying to decide whether bankruptcy is the right debt relief option for you, we can help. Let us review your individual finances and help you understand all of your legal options. Below are also a few tips to consider prior to filing your Chapter 7 or Chapter 13 case:

  • Work with a seasoned bankruptcy lawyer: Selecting the ‘right’ attorney is one of the most important decisions you can make. You want to work with somebody you trust and that you feel confident can handle all of the issues that may arise in your filing. Use your initial consultation to ask questions and see how well the lawyer answers them. Be sure you also discuss how the law firm will charge you and what legal services will be included for that fee.
  • Continue making your mortgage payments: If you want to keep your home, you should remain current on your house payments. This is also true for your other secured loans, such as your car loan. You should remain current on all of your secured loans if you intend to keep possession of the assets you pledged as collateral. Failure to remain current on such loans could result in the creditor obtaining relief from the automatic stay and seeking to foreclose or seize their collateral. In a Chapter 13 filing, you can get caught-up on your past due payments, but it will increase your monthly payment throughout the term of your bankruptcy.
  • File your tax returns: You should file your tax returns prior to your petition date, or at least be prepared to file them quickly after your bankruptcy filing. If you fail to timely file your tax returns, the bankruptcy court can dismiss your case.
  • Organize your financial documents: One of the most helpful things a client does for his or her bankruptcy attorney is to organize all of your financial records. Whether you file a Chapter 7 or Chapter 13 case, you must disclose all of your assets, debts, expenses and income. It is imperative that your financial disclosures to the bankruptcy court are true, accurate and complete. Failure to make proper financial disclosures can result in the loss of your discharge of debts, a monetary penalty, or even jail time.

At The Law Office of Diane Anderson, our lawyer has been through a divorce, a bankruptcy, and faced estate planning and probate termination after her mother passed away at a young age. This kind of experience is unmatched by attorneys who have simply guided their clients through each process. Contact us today to schedule a comprehensive consultation.

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