Do you feel you are drowning in debt this 2020? There’s something you should know: You are not alone. The finances of millions of Americans were devastated by the pandemic economic crisis, and many have been forced to take on more and more debt to keep themselves afloat as a result. If this sounds familiar to you, then you’re probably looking for a legal way to get rid of your debt, and bankruptcy may be your best option.
However, bankruptcy is a fairly complex process. That’s why you need tang & associates to help! It’s not as simple as going to the courthouse and asking to have your debts discharged. On the contrary, bankruptcy requires that you adhere to every rule and regulation to the letter for the process to be successful, and you must prepare yourself accordingly. Below you will find 7 steps you should take before you file for bankruptcy.
1. Choose A Bankruptcy Attorney
You can theoretically file for bankruptcy on your own, but that doesn’t mean it’s a good idea. The bankruptcy process can be very complicated, especially for those who are not familiar with it. If you proceed alone, you may make mistakes that cost you a lot of time or put your most precious assets at risk.
That’s why one of the first things you should do when preparing to file for bankruptcy is to choose a bankruptcy attorney you can trust to guide you through every step of the process.
If you are looking for a huntington beach bankruptcy lawyer who is always available to you and who is committed to helping you get a fresh financial start, you should consider working with KT Bankruptcy Lawyer. This law firm has helped hundreds of Californians wipe out their debt via bankruptcy this 2020, and they can help you achieve that as well. Contact them now for a completely free consultation.
2. Collect Your Documents And Get Your Bills Together
After choosing a lawyer, you should collect all your financial documents and bills and give them to your bankruptcy attorney. In addition, you should make a list of all your debts, even those for which you have no bills. This is because you will have to disclose all of your finances before the court to get your bankruptcy approved.
3. No More Credit
Taking on even more debt when you’re considering bankruptcy is a very bad idea. Keep in mind that the court will evaluate the 90 days before your filing to determine if you have assumed new debts. If the court finds that you have borrowed money within that time, your filing may be rejected. However, if you find yourself caught in a debt loop, ask your attorney for advice on how to proceed.
4. Stop Paying Unsecured Debts
Keep in mind that unsecured debt, such as medical bill payments, payments to credit card companies, and personal loans will be discharged through bankruptcy, so there is little point in continuing to pay them. Don’t worry about calls or visits to collect the debts, once you file for bankruptcy your creditors will be forced to stop contacting you.
5. Create A Monthly Budget
Before, during, and even after your bankruptcy, you will have to get used to living without credit. This is the perfect opportunity to learn how to live on a monthly budget. If you don’t know how to do this, your attorney can help you prepare a reasonable plan.
6. Determine Your Timeline
The bankruptcy court will consider your financial activity during the previous 6 months and immediately prior to your declaration. This means that if you have unusual bank activity during that time, your filing may be at risk. Talk to your attorney to develop an optimal timeline before your bankruptcy filing.
7. Prepare A Recovery Plan
Remember that after filing bankruptcy you will probably only have access to low-limit credit cards. This will be the case while you rebuild your credit score. Prepare yourself for post-bankruptcy life and make sure you stick to your monthly budget until you can recover completely.
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