Three Things You Need to Know Before Filing for Bankruptcy

logo-squareFiling for bankruptcy does not necessarily mean you are an irresponsible person or an untrustworthy consumer.  In fact, studies conducted at the National Bureau of Economic Research found that even those well-paid Tampa Bay ball players you love were filing shortly after they retired their jerseys (actually, more than 78% of them). The reason behind this occurrence is what’s known as “financial stress,” and we all go through it. Regardless of whether we make millions or simply survive from paycheck to paycheck, we are all definite candidates for bankruptcy if things go awry.
Three Tips to Help You Prepare for a Smooth Bankruptcy 
Financial stress or not, you need to proceed with caution.  Before you even think about getting started, be sure to arm yourself with strong team of professionals. You could be doing irreparable damage to your case and not even know it.  A good attorney will always give you detailed instructions on the dos and don’t of filing for Chapter 7 or Chapter 13 bankruptcy. However, there are some basic things everyone should know before moving forward.

  • Consider the Effects of Your Decision

It is your responsibility to fully grasp the ramifications of filing for bankruptcy. While each case is different, nobody has a completely clean record after filing, and certain debts will remain attached to your account – namely tax debts and student loans. Any co-signers will still be obligated to pay debts, and your credit rating will look pretty bleak for a while. This may make it difficult to attain lines of credit in the future, and might also result in incredibly high interest rates on any loans you do acquire.

  • Avoid the Mayhem of Making Major Purchases 

While  buying anything during a bankruptcy might sound like nonsense to some, other people are simply unaware of the effects of this bad decision. At no time should you make any major purchases, including cars, homes, or vacations. You aren’t paying your bills in preparation for bankruptcy, but that doesn’t mean you should spend your surplus money on frivolous items.  In fact, doing so might get you into trouble with the law because it is actually bankruptcy fraud.

  • Know How a Good Bankruptcy Attorney Costs Money and Requires Your Cooperation 

You can find cheap legal services anywhere, but you will most likely be disappointed by the result in the end.  Remember that the bankruptcy process is a complicated, involving stacks of paperwork, hours fighting red tape, and several court dates. A certified attorney is the only one capable of handling your case.  As a result, those professionals will probably charge a bit more than an attorney who is ineffective or incompetent.
Keep It Simple
Help make your attorney’s job easier; gather all the appropriate documentation before the process begins. Remember that a good bankruptcy lawyer is well worth the money, but they cannot do their job correctly if you are unwilling to provide the information they need in a timely manner. Our attorneys know how to walk you through the process with minimal hiccups.  When you are ready to file Chapter 7 or Chapter 13 bankruptcy, contact us. Be sure to ask for the Professor.

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