Bankruptcy can be one of the most effective tools available to help you get back on track in the New Year, but it is still a big decision. It is not the right option for everyone, but there are many who will turn their financial lives around by filing this year. If you are one of the millions who will start fresh by filing for bankruptcy in 2015, these three tips can help you prepare.
Work with a Bankruptcy Attorney that Has Bankruptcy Experience
Any attorney can help you file for bankruptcy. As a matter of fact, you don’t even need an attorney to file. Unfortunately, handling your bankruptcy alone or without the assistance of an experienced bankruptcy attorney is a big mistake. The process of filing for bankruptcy is complex and even a minor misstep can result in the dismissal of your case or jeopardize your assets. If you have not already, now is the time to interview bankruptcy attorneys and choose the one that is best for you.
Alter Your Spending and Paying Routine Immediately
If you plan to file for bankruptcy now that the New Year has arrived, there are a few immediate changes you can make to how you pay your bills and how you spend your money. Once you decide to file for bankruptcy, you need to stop requests to use money that is borrowed. Otherwise, it can look as if you are committing bankruptcy fraud. If the court thinks you are trying to spend money last-minute before asking your debts be discharged, they can deny your bankruptcy request and charge you with a crime.
What you can do is stop paying your current debt. You want to avoid favoring one creditor over another, so most of your debts can go unpaid once your bankruptcy begins. Your bankruptcy attorney will explain this in detail and help you determine which, if any, of your debts should still be paid.
Design a Budget
The goal of bankruptcy is to give you a fresh start and give you the opportunity to make better financial choices in the future. You will need to stick to a strict budget while your bankruptcy is in action and continue to do so once your bankruptcy is complete. Debtor Education is a requirement in your bankruptcy, and will be an important tool to help you make responsible financial decisions in the future.
Sometimes the need to file bankruptcy is not caused by poor financial decisions, but by unavoidable life events, such as unemployment or unexpected medical costs. Financial counseling and guidance creating a budget is a helpful tool, even if your circumstances were unavoidable.
Budgeting isn’t the only thing you need to understand once your bankruptcy is complete. Check out these other thingsthat will happen once your bankruptcy is complete.
To learn more about what you can do to prepare for your upcoming bankruptcy in 2015, contact the law office of Frank J. LaPerch, PC at 845.942.5500.