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Filing for bankruptcy is a complicated process, and planning is vital to ensuring a positive outcome. Many factors can affect how your claim is processed. Getting organized before filing can have a significant impact on your financial well-being afterward and will make the process much easier.

3 Pre-Bankruptcy Planning Tips

1. Hire a Bankruptcy Attorney

Rather than exploring bankruptcy options on your own, get off to the right start by working with an expert. An attorney gives you reliable guidance through the complexities of the process. In many cases, a lawyer can help you keep assets, advise which form of bankruptcy is best for you, and explain if other debt-relief options are available. They can also protect you from creditors leading up to filing.

2. Organize Your Assets

bankruptcy During Chapter 7 bankruptcy, assets are often liquidated in exchange for debt being forgiven. Anticipate what you might lose while also protecting anything that’s exempt. To get a grasp on this, organize all of your assets and financials to have a clear picture of what you own. Some debts — such as student loans and back taxes — aren’t forgiven, and you’ll need to plan on how to handle this after bankruptcy. This is also a good time to see what debts you can pay before bankruptcy to lessen the blow.

3. Stop Auto-Pay

Many monthly bill services offer discounts and convenience with automatic payments. Every dollar is essential when filing for bankruptcy, so turn off auto-pay options. It can lead to harmful payments on maxed-out credit cards and will hurt your credit immediately after bankruptcy. In some cases, you may also auto-pay on debts you no longer own and creditors may refuse to refund the money.

 

Preparing for bankruptcy requires commitment and experience, so turn to the legal team at Cecil & Cecil PA in High Point, NC. They offer comprehensive bankruptcy services and are dedicated to helping clients get back on their financial feet. Call (336) 883-8383 today to schedule a consultation, and visit the law firm’s website to learn more about their practice.

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