If you’re struggling financially, declaring Chapter 7 bankruptcy could provide much-needed relief. By discharging applicable debts, you can regain your financial footing and go on to thrive. However, Chapter 7 will only yield a clean slate if you avoid making critical missteps during the filing process. Here are a few tips for navigating the proceedings, so you can secure the most favorable outcome possible. 

Do:

Tell your attorney everything.

If you’re facing bankruptcy, you might be ashamed of your financial situation. However, it’s important to disclose everything to your attorney. A compassionate lawyer will not judge you and has undoubtedly represented clients in far more debt. At the end of the day, telling your attorney everything will ensure you receive the most relevant and comprehensive counsel possible. 

Attend credit counseling. 

Typically, petitioners must attend credit counseling before filing for bankruptcy. They have 180 days from the date on which they finish an approved program to submit their petition to the bankruptcy court. Since there may be a long wait list for the counselors near you, it’s wise to sign up for a program as soon as you decide to file. 

Don’t:

Pay some creditors but not others. 

Any payments you make to preferred lenders in the 90 days before filing are subject to being recovered and redistributed among all your creditors. As such, only paying some creditors could complicate the proceedings considerably and draw them out for a lot longer than necessary.

Transfer assets.

If you gift assets to loved ones before filing, the court will not look favorably upon it. Even if you did so in good faith and were not trying to commit fraud, a judge may see it as such and impose the applicable penalties. 

If you want to declare Chapter 7 bankruptcy, turn to O’Connor, Mikita & Davidson LLC for guidance. With three offices in Cincinnati, OH, this full-service firm brings more than two decades of experience to the table. Individuals throughout Hamilton County can turn to them for legal counsel regarding personal injury claims, family law disputes, criminal defense, civil litigation, workers’ compensation, and estate planning. To learn more about their services, visit their website or call (513) 793-5297.