The Dos and Don’ts of Filing a Bankruptcy

IN BANKRUPTCY

Alright, you have it in mind that filing bankruptcy is going to help you to reach your goal of a fresh start.  Now what?  Well, you need to find a good bankruptcy attorney to help you file, but besides that, there are some dos and don’ts of filing that we will take a look at in this post.  The last thing that you want to have happen is to have your discharge denied or revoked because you did something that you shouldn’t have done.

What to do before you file:

  1. Do find a good, experienced bankruptcy attorney.  You can do this by looking around on the internet and going to a free consultation to see what the attorney has to say.  I recommend that you visit the attorney finder page of the National Association of Consumer Bankruptcy attorneys.  That link is http://www.nacba.org/find-an-attorney/ You can also find bankruptcy attorneys at http://www.avvo.com and then search for a bankruptcy attorney in your area.
  2. Do get all of your documentation in order.  It will be very valuable to your attorney and will save you time at his or her office if you have the following documents before you go in:  Paystubs for the last 7 months, bank statements for the last 2 months, tax returns for the last 2 years, copies of the most recent retirement account statements, most recent statements for car or home loans, credit reports, divorce decree or separation agreement and a list of everything that you own.  Also if you have any pending lawsuits, or if you could sue someone be ready to let your attorney know about those suits.  Your attorney may require more or less documentation, but if you have all of this, you are well on your way to getting filed.
    1. You can get your credit reports for free by going towww.annualcreditreports.com
    2. If you cannot find your taxes for the last two years you can request them at www.irs.gov.
  3. Do be honest and forthcoming with all of the questions that your attorney asks you.

What NOT to do before you file.

  1. Do not pay back friends or family members.  Everyone you owe must be listed in the bankruptcy schedules.  The debt would get discharged.  If you wanted to voluntarily pay them back, do it after the bankruptcy.
  2. Do not transfer any items out of your name prior to filing without consulting with an attorney.  The trustee could view this as a fraudulent transfer and look to undo it in the bankruptcy.
  3. Do not buy anything worth more than $500.00 in credit in the 3 months leading up to the bankruptcy.
  4. Do not pay any one creditor more than $600.00 in the 3 months leading up to the bankruptcy.
  5. Do not take out payday loans of more than $750.00 in the 70 days leading up to the filing of the bankruptcy.
  6. Do not go on an expensive vacation prior to the filing.
  7. Do not spend your money on items that are not reasonable or necessary before filing bankruptcy.
  8. Do not freak out.  Bankruptcy is really not that bad.

If you have done anything on the DO NOT list, contact an attorney and see what you need to do before you file.

Best of Luck,

Steven M. Palmer
Licensed in WA and OH

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