Bankruptcy Planning

Make sure that you seek credit counseling, even if you have been approved for Chapter 7 or Chapter 13 bankruptcy, since you are required to complete approved credit counseling. You may also want to take the time to reconsider the timing of bankruptcy if your income has recently changed. You may benefit more or less depending on whether you wait to file or go forward with it now.

If you are filing for Chapter 7 bankruptcy, plan ahead by looking at which debts are going to be discharged and which ones are not. You do not want to be putting money toward dischargeable debts. Instead, put more of your money toward nondischargeable debts. This way you are not wasting your resources.

Here are some other things to consider when planning for bankruptcy:

• Reorganize location of assets if they are in a credit institution you owe money to; otherwise when you file for bankruptcy, that institution may be able to take your money and apply it toward your debt.
• Evaluate your exemptions: maximize exemptions by considering converting nonexempt assets into exempt assets.
• Stop using credit cards: charges exceeding $750 within 70 days prior to filing are presumed fraudulent.
• Report all significant financial transactions: you want to avoid accusations of fraud; this includes property transfers.

To plan for your bankruptcy, call Chang & Diamond, APC. Contact us today to schedule your free initial consultation with an experienced bankruptcy lawyer.