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I think I am ready to file. What's next?
First, give us a call. The best thing that you can do is to educate yourself about the process and a phone call is the best way to get started. Our attorneys are generally available during regular business hours. We have operators available 24-7 and, generally, an attorney will return your call within 24 hour, even on weekends. Give us a call for free phone or in person consultation with a qualified attorney. Second, leave your retirement accounts alone. Using retirement money to pay down debt is a bad idea, but it's particularly bad if you think you may be headed to bankruptcy court. Money in 401(k) s, IRAs and other retirement accounts is typically protected from creditors, so you'd be using cash that could have been preserved to pay debts that would have been wiped out. Third, don't drag your heels. Ask bankruptcy experts -- the judges, attorneys and trustees who handle these cases -- and they'll tell you many people wait too long to file, continuing to throw good money after bad as they struggle with debts they can't pay. Once you decide bankruptcy is the right choice for you, take action. Get your attorney the paperwork he or she needs and follow through on the other steps required to keep the process moving. Fourth, stop paying debts that are likely to be discharged. Typically it makes little sense to continue paying debts that will be erased in bankruptcy, such as credit cards, medical bills and payday loans. You're sort of throwing your money away," Talk to us first, and ask how best to handle creditors. Fifth, start saving. Bankruptcy can be expensive. A Chapter 7 typically costs $1,200 at our firm including filing fees and your attorney's bills. You may be able to raise the cash if you stop paying your soon-to-be-discharged debts. Sixth, stop using your credit cards. As soon as you know you're going to file, cut up the cards. If you use a credit card that you don't intend to pay back, that's considered fraud. In particular, don't take out cash advances or buy luxury items if bankruptcy is even a possibility, because those actions can scuttle your filing and get you charged with fraud. Seventh, move your cash if necessary. Do you owe money to a bank or credit union? Before you file, withdraw any money you have there and move it to a bank or credit union to whom you don't owe anything. Otherwise, once notified of your bankruptcy, the bank may try to seize that cash. Eighth. Don't buy anything major. You typically can't protect any asset purchased within 90 days of a bankruptcy filing, so don't buy a car or property or anything else of real value. Ninth. Don't give away money, property or assets. Once you know you're going to file, you shouldn't make a financial move without consulting your attorney. That's particularly true if you want to pay back friends or relatives or transfer assets to anyone else. Even if you're trying to do the right thing, you could be committing fraud. |
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