Chapter 7 bankruptcy, also known as a liquidation, provides critical protections for borrowers struggling with debts they can’t repay. While these substantial benefits can give you a second chance at your financial life, the process is extremely complex, and minor mistakes can cause a delay in your petition. Mark O. Grater Attorney at Law, a bankruptcy lawyer in Groton, CT, recommends the following tips for those considering debt relief.

Do:

Close accounts at banks where you have loans.

When your loans go into default, financial institutions may seize funds in any checking, saving, and investment account the same bank holds. While a bankruptcy lawyer can unfreeze these assets, it’s much easier to close the accounts before filing.

Hire a bankruptcy lawyer.

A bankruptcy attorney will provide the critical guidance you need to successfully navigate the process so you get the maximum benefits of liquidation. They will help you keep as many assets as possible, ensure all eligible debts are discharged, and represent you at any required court hearings.

Don’t:

Transfer any assets beforehand.

After you file a petition, the trustee will review your financial history and may undo any transactions which showed preference to one creditor over others. If you have transferred real estate, vehicle, or other assets to a friend or family in the previous year, the trustee may seize those assets and put the funds toward your unsecured debts.

Incur new unsecured debts.

While it may be in your best interests to secure financing on a new car or other secured debt before filing for chapter 7 bankruptcy, using credit cards may lead to a dismissal of your case. Stop using credit cards several months before filing your petition.

With over 30 years’ experience and a reputation throughout the area for effective legal representation, Mark O. Grater Attorney at Law has helped clients reclaim their lives from debt. When your financial future lies in the balance, rely on their expertise to achieve the best possible outcome. Visit their website or call (860) 449-8059 to speak with a bankruptcy lawyer and follow their Facebook for more legal tips.