The Dos And Don’ts Of Bankruptcy

Many people will agree that having to file for bankruptcy signals the end of the line. They can’t imagine how it is possible to overcome such a major financial blow, especially as you will no money left at all. But thankfully, bankruptcy doesn’t have to always be so devastating for you. As long as you follow these dos and don’ts, you will find that it can actually be quite easy to bounce back from it.


Don’t Leave Assets Off Bankruptcy Papers

To file for bankruptcy, you will need to fill in some bankruptcy papers. You will be required to fill in a lot of information and details on these papers, including details of all your assets. Some people fail to mention certain assets for various reasons. However, it really isn’t advisable that you leave any assets off these papers. If you do leave something off, it will not be protected, and you might lose it to pay off some of your debt. You are also legally obliged to mention all mortgages and car loans on your papers as well.


Do Tell Your Lawyer Everything

It is crucial that you get help with bankruptcy from a lawyer who specializes in debt and other financial situations. They will be able to uniquely assess your situation and tell you what your best course of action is. When you do meet your lawyer for the first time, it is important that you tell him or her everything that there is to know. Don’t hide anything out of embarrassment – they will need to know your whole situation so that they can help you as best they can.


Don’t Continue To Use Your Credit Cards

If you have any credit cards, you need to stop using them straight away. You should also stay away from convenience checks for the time being as well. Wait for ninety days after you have filed for bankruptcy to use these kinds of payment methods, as excessive use of them could affect your overall claim. In the worst-case scenario, you might even be required to pay back this debt you have built up on your credit cards before you can continue with your bankruptcy claim.

Do Leave One Bank Account Open

It is often recommended that individuals who are going through a bankruptcy claim close down as many bank accounts as they can. You should go ahead and close accounts, but always make sure that you leave one open. This account will be the one you can live out of on a day to day basis while you are waiting for your claim to go through. Be aware, though, that the bank will be able to access this and withdraw funds to pay off some of your debts.


Do Be Cooperative

The best thing you can do during a bankruptcy claim is to be cooperative. It is against the law to hide anything or lie while you make this kind of claim and, if you do, it will only hold up proceedings. So, be sure to always cooperative is you want this whole saga over and done with.

Good luck!

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