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When one is in search of immediate debt relief, bankruptcy can provide an urgent solution. However, even with an automatic stay order, it may take upwards of a week for creditors to stop trying to get in touch. To save money and speed up the bankruptcy process, the following tips may ensure the filing stages go as smoothly as possible.

How to Prepare for Bankruptcy

1. Use a Different Bank

When applying for a loan, a credit card, or an account with a bank, contracts usually include a set-off agreement. This means that once someone files for bankruptcy, the bank can use this agreement to take the remaining balance in their account and use it towards the debt they owe. To prevent this from happening, set up an account at another bank so that all new funds, payroll and otherwise, are deposited in the new bank.

2. Put an End to Automatic Payments

bankruptcyWhile the automatic stay may prevent creditors from asking for money voluntarily, it won’t immediately stop their systems from charging your account if you had previously set up automatic payments. Therefore, it’s crucial to log into your online portals or call the companies that bill you on the same day each month. If you stop these payments far enough in advance, you won’t have to worry about falling short on essential expenses once you file for bankruptcy. Also consider stopping any automatic debt management repayment plans.

3. Gather the Essential Documents

Once your funds are protected, start gathering the legal documents needed to file for debt relief. To start, you’ll need copies of recent tax returns and proof of income for the past six months. Those preparing for Chapter 7 bankruptcy may have to complete the Means Test to see how their income ranks among other area residents. Copies of credit report are also needed. AnnualCreditReport.com is one site where you can get a free credit report. Be sure to save the report as a PDF prior to logging out of the site.  You also want to review your assets including any property or high-ticket items owned and review their values. Having all this information ready to go when meeting with a bankruptcy attorney will significantly speed up the debt relief process.

 

To file for bankruptcy with confidence, turn to Nancy V. Jacob of Cincinnati, OH, today. Attorney Jacob has over 30 years of experience in bankruptcy law, and she continues to emphasize the importance of proper preparation and communication. As a member of the National Association of Consumer Bankruptcy Attorneys (NACBA), she handles debt relief situations with tact and efficiency. For more information on her skills, visit the website, and call (513) 921-1400 to schedule a consultation.

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