Many people think filing for bankruptcy means you have hit the bottom of the barrel. It has a negative stigma attached to it, making many choose to shy away from filing. But the truth is bankruptcy is a great option available for those in difficult financial situations. It can provide you with a fresh financial start and the ability to live the life you always hoped to. If you are thinking about filing for bankruptcy to get your finances back up to par, keep in mind there a few steps you should take before you start.
Find Your Best Fit
Chapter 13 will mean you repay a portion of your debts through a repayment plan that typically lasts between three and five years. Chapter 7 bankruptcy allows for most of your debts to be discharged. There are certain requirements that must be met in order to qualify for either type of bankruptcy.
The next step is to complete credit counseling, which is required under bankruptcy law. This step can be completed online.
Another thing to do before filing for bankruptcy is to compile and organize any and all information pertinent to your financial situation. That means making a list of every creditor and split them into two categories: unsecured and secured. They all have to be notified when you file for bankruptcy.
Other minor steps that will help make your bankruptcy process go smoother include stopping your use of credit cards, making sure any automated payments are stopped, and filing your taxes. Using a credit card right before filing for bankruptcy might be misconstrued as fraud since you have no intention of paying that debt.
Finally, one last important step to take prior to filing for bankruptcy is to hire an attorney experienced in bankruptcy litigation.
Let Mr. Spivack Be Your Bankruptcy Guide
The good news for you is that the right bankruptcy attorney is not far away, especially if you live in New Jersey. The Law Office of Joel R. Spivack is where you will find the experience and expertise you need to successfully work through the bankruptcy process. Mr. Spivack has been helping New Jersey clients with their financial struggles for more than 25 years. And if bankruptcy is not the answer for you, he can provide you with bankruptcy alternatives. All you have to do is fill out the online contact form to begin discussing your case with him today.
The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.