Filing for bankruptcy protection is something that many people do when other debt relief options have failed to help them pull out of debt. It is possible that you are considering filing for bankruptcy protection to get back on the right financial track. But, there are a few things that you must do before you file bankruptcy. It is essential that the time to complete these steps is taken ahead of completing paperwork to file bankruptcy. Your lawyer will help complete most of the steps. Some of the most important tasks to complete are found below.
New bankruptcy laws require that anyone who wishes to file for bankruptcy present the prior year tax return. Without the tax return, you will be unable to file for protection from the bankruptcy courts.
Don’t Give Money Away
Giving money away to family or friends is a big mistake if you are asking the court to grant you bankruptcy protection. This may be looked at as an attempt to deceive the courts and as you might imagine, is frowned upon considerably.
Credit counseling is a required part of filing for bankruptcy protection. Every individual who plans to file for bankruptcy must complete the counseling with a pre-approved provide within 90 days of their court hearing. There is a lot of information offered in the credit counseling courses that can help avoid making the same mistakes in the future. Costs for counseling vary, but it is the responsibility of the person to cover the costs.
Talk to a Lawyer
You can find a lawyer when you visit places like dovebankruptcylaw.com. It is important to schedule a consultation with a bankruptcy lawyer to learn more about the type of bankruptcy, the benefits, and other important information. Furthermore, you need a lawyer there to represent you when filing for bankruptcy. This is one of the most complex matters you will ever face and going through it alone is not ideal.
Appear Before a Judge
Although a judge is likely to approve your request to file bankruptcy if the proper steps are taken, you must understand that a bankruptcy is not final until it is approved by a judge. Thus you will need to make an appearance before the judge to get the granting of the bankruptcy.
Stop Acquiring Debt
If you plan to file for bankruptcy protection, stop using credit cards now. If the cards are used recently, the court will look at it like you had no intention to repay the debts. This is the same for other debts that you accrue shortly before filing for bankruptcy. Avoid the hassles and the headaches altogether.
Do not hide any information or leave any facts out when it is time to file for bankruptcy protection. This could cause your request to be denied as well as a plethora of other problems that you don’t want to deal with. Whether it is income, expense, or something else, make sure that it is disclosed to the courts when filing for bankruptcy relief.