Filing for bankruptcy is complicated and overwhelming. Before you dive in, there are several steps you can take to prepare for bankruptcy.
Following our advice can help you avoid making several mistakes that will cost you time and money in the long run. Taking these necessary actions before filing for bankruptcy can significantly impact the outcome of your case.
Continue reading to learn more about preparing for bankruptcy below.
5 Steps You Can Take to Prepare for Bankruptcy
- Gather Necessary Documents — You will need to gather a few documents before filing for bankruptcy. Make sure to collect six month's worth of income and bank statements, credit reports, the last two years' worth of tax documents and returns, loan statements, and all your bills.
- List Your Expenses and Debts — To prepare yourself for bankruptcy, you need to make a list of your monthly living expenses and debts to complete a Means Test. The Means Test will determine whether or not you can file for Chapter 7 bankruptcy.
- Make a List of Your Assets — Next, you will need to report your assets. Make a list of all of the property and valuable assets that you own and calculate their value. You will not need to list each small household item or every single piece of clothing. However, you will need to report more expensive items, such as your house, vehicles, jewelry, and anything of value.
- Complete a Credit Counseling Course — As you prepare to file for bankruptcy, you must finish a credit counseling course. This course will help you prepare by asking many of the same questions about your income, monthly expenses, and debts that you are required to answer as you fill out the bankruptcy forms. For a small fee, you can complete it online in a few hours.
- Prepare Yourself Mentally and Emotionally — It is no secret that preparing for bankruptcy is stressful, and it is crucial to prepare yourself mentally and emotionally for this new chapter of life. Here are a few tips for managing these overwhelming feelings:
- Allow yourself to feel out your emotions and acknowledge your situation.
- Curb your anxiety by learning all that you can. Use your knowledge to get a handle on everything.
- Talk to someone. Confide in a friend, family member, or professional who can help you sift through your thoughts and concerns.
- Make a financial plan and stick to it. It will take plenty of discipline and determination; however, if you stay committed, you can find financial relief on the other side.
Contact Charles W. Daff, Bankruptcy Attorney
One of the best ways to prepare for bankruptcy is by working with an experienced and knowledgeable bankruptcy attorney. Hiring a skilled professional, who is familiar with the complexities of filing all types of bankruptcy, can help you navigate this intricate process and give you the direction you need. Charles W. Daff, Bankruptcy Attorney, has over 43 years of experience in bankruptcy law. If you reside in Orange County, Riverside County, San Bernardino County or Los Angeles County and are considering filing for bankruptcy, contact Charles W. Daff, Bankruptcy Attorney today.