Chapter 13 Bankruptcy Lawyer
If you’re drowning in debt, you may be considering filing for bankruptcy. While bankruptcy can help you get rid of most of your unsecured debt, it can have long-lasting effects on your income and loan eligibility. That’s why it’s important to prepare adequately for it. The more you prepare, the smoother the process will be.
Here are some helpful tips for preparing for bankruptcy.
Consult With a Lawyer
If you want to file for bankruptcy, the first thing you should do is speak to an experienced bankruptcy lawyer. While you can save money by filing for bankruptcy by yourself, it’s not recommended. Bankruptcy is a complicated process and you want someone with knowledge and experience on your side. A bankruptcy lawyer can assess your financial situation and let you know if bankruptcy is your best option. If your lawyer determines that bankruptcy is in your best interest, he or she can help you decide between filing Chapter 7 and Chapter 13.
Cancel Automatic Payments
Once you file for bankruptcy, creditors are supposed to cancel all automatic deductions from your bank account. However, this doesn’t always happen. Sometimes mistakes can occur. Instead of relying on your creditors to do it for you, cancel all automatic payments before you file for bankruptcy.
Tighten Up Your Budget
When filing for bankruptcy, you still have to at least attempt to pay back your creditors a portion of what you owe them. That’s why it’s important to look over your current expenses and see what you can realistically cut out. For example, instead of eating out a couple of times a week, eat at home more.
Stop Using Your Credit Cards
If you’ve made the decision to file for bankruptcy, you should stop using credit cards immediately. If you attempt to use your credit cards or borrow any more money after you’ve filed for bankruptcy, it will be seen as fraud. This will not only jeopardize your bankruptcy case. It can also send you to jail.
Tell a Trusted Friend or Family Member
Filing for bankruptcy can make you feel bad about yourself. You might feel like a failure and even get depressed for awhile. That’s why it’s important to talk about how you feel with a trusted friend or family member. Tell them that you’ve decided to file for bankruptcy and why. If you talk it over with someone you care about, you may feel better.
Star Thinking of a Recovery Plan
It’s never too early to start thinking about a financial recovery plan, even if you haven’t filed for bankruptcy yet. Make a list of what you can do to get your finances back in order. For example, you consider opening up a savings account and signing up for a secured credit card once your debts are discharged.
If you’re considering bankruptcy, speak to a chapter 7 bankruptcy lawyer in Clearwater, FL about your options.
Thanks to the Law Office of Michael A. Ziegler, P.L. for their insight into bankruptcy law and how to prepare for bankruptcy.