Now if you have spoke with a professional, followed that advice and have begun to prepare for bankruptcy, there are additional things that you should do. By gathering the paperwork and preparing to hand that over to your attorney, you are ready to continue on your path.
You need to begin to save some money so that you can pay for the bankruptcy. They are not free after all and the typical bankruptcy will cost you around $1500. You can save for this money by several methods. Here are a few suggestions.
1. Talk with your Attorney about which debts are likely to be discharged. Since they are going to be discharged you can stop paying those debts that will be erased in bankruptcy. If you are planning on giving up your home or automobile then you can consider those amounts as well. But talk with your attorney first about which debts you can stop paying.
2. Hopefully, you have already tried to correct your financial problems by managing your finances. If you have cut all of your extra expenses and are managing your budget well, then maybe you can have a garage sale. Cleaning out your clutter will help you with more than one problem, especially if you are planning on giving up your home.
3. Get some additional income at least temporarily by getting a second job or your spouse getting a job. It may be difficult if you have children but a little additional income can help you find the funds for the bankruptcy.
4. If you have a tax refund coming, then you can put that towards the bankruptcy.
5. You can ask for a gift from your family or friends. This may be difficult unless you have been completely honest to your friends and family because they may not know of your financial situation.
Be aware that if you have money in a bank that you owe money, you may want to move that to a bank that you don’t owe any money. Some banks will freeze the account and try to cover their losses when you file bankruptcy.
Stop using your credit cards because you know that this is money you are not going to be paying back, it won’t look like fraud. By making any large purchases or using your credit cards prior to bankruptcy you make be accused of fraud and this could affect your bankruptcy. Again, talk with your attorney if you have any questions prior to doing anything.
Talk with your attorney if you plan to pay off any personal loans or transfer title on any properties that you have. Even if you are trying to do the right thing, you could be accused of committing fraud and then it might cause problems with your bankruptcy.
Finally, you will be required to complete a credit-counseling course. Talk with your attorney and see if you have a specific course outline that must be followed, then complete that course. It will be required before you can complete your bankruptcy so talk with your attorney and get that completed.
Bankruptcy should never be anything but your last option in correcting a financial problem. Although it might solve your current financial situation, you may not have learned your lesson. Learning what caused you to get into this position is the only thing that helps you in the long run. Do not repeat your mistake or you will end up here again. You will have to report if you have ever filed bankruptcy on many application and if lenders see that you have filed more than once, then you are likely to be denied no matter your credit at that point. Lenders can forgive a single bankruptcy because we all make mistakes. But if they see that you keep repeating your habits and have filed more than one bankruptcy then some lenders are likely to deny you based on that information.