Steps You Should Take to Get the Full Benefits of a Personal Bankruptcy Petition
You can’t meet your financial obligations because you’ve been sick or injured or you’ve lost your job. You know things will eventually get better, but the foreseeable future looks bleak. That’s why the bankruptcy laws are in place—to help you get a fresh start when the unexpected happens. But if you’ve decided that a personal bankruptcy filing is the best way forward, you want to make certain you get the most out of it. Here are some simple things you can do to take the most advantage of a Chapter 7 or Chapter 13 filing.
Hire the Best Bankruptcy Attorney You Can Find
This should be the first thing you do. Your attorney can run interference for you and ensure that you don’t take steps that negatively affect your bankruptcy rights.
Get a Full and Accurate Picture of Your Financial Obligations
The bankruptcy court will require that you disclose all debts and sources of income. But knowing exactly where you stand helps you and helps your attorney take the right steps to alleviate your financial burdens. Don’t let your embarrassment or shame cause you to hide debts or income. Put it all on the table and you can move forward with confidence.
Stop Buying Anything You Don’t Need, Especially on Credit
In a Chapter 7 filing, you can permanently discharge credit card debt, as well as other types of unsecured obligations. However, if you’ve racked up credit card debt in the weeks and months immediately prior to your filing, the court may not allow you to discharge those debts. If you have no source of income and need to use credit cards to purchase necessary items, such as food, let your bankruptcy attorney know.
Give Priority to Your Secured Creditors
You will be able to discharge debts to unsecured creditors, such as credit card companies and medical services providers, so there’s no point in using what little funds you have to pay them. Use your money first for necessary items and then to pay such obligations as mortgage and auto payments. Don’t try to pay off loans from friends or family members, either. The court can look back as far as a year and require that those payments be returned to the bankruptcy estate.
Contact an Experienced Rockwall, TX Bankruptcy Attorney
At the Law Offices of Carrie Weir, all potential clients are entitled to a free initial consultation. To arrange an appointment, contact my office online or call 972-772-3083. I handle Texas personal bankruptcy filings in Kaufman County, Rockwall County, Collin County, Dallas County, Hunt County and the surrounding counties.
