Preparing for Bankruptcy: What You Should not Do

Preparing for bankruptcy does not only entail vital steps upon filing for bankruptcy, but it also means you should know what not to do before turning in the bankruptcy papers. Bankruptcy can be a good thing, but only if you do everything you’re supposed to do.

The good news is that, for the majority of the things you need to do, you can consult a bankruptcy attorney in Escondido. In this article, however, we focus on what you shouldn’t do when preparing for bankruptcy.

How do I prepare for bankruptcy?

Preparing for bankruptcy can be daunting, but, that does not mean you should stress yourself out too much.

Nobody’s saying you should take bankruptcy lightly. You should not. But, you should remain calm and try to prepare for the proceedings in the best way possible. First, hire a bankruptcy lawyer and then, follow these tips:

1. Running away – Don’t! Don’t bury your head in the sand, as bankruptcy is nothing to be afraid of. Decide to tackle your problems head-on, and start from there.
2. Reports – There are websites where you can download all the credit reports the bureau has on you. Review them carefully, or take these documents to a bankruptcy lawyer.
3. Records – Take a look at all the public records to see if there are any creditor judgments popping up.
4. Employer – Also, check if the employer you’re currently working on is listed on your credit report.
5. Account – Keep the funds on your bank account law, so as to limit the creditors’ possibility to relieve you of your funds.
6. Contact – get your creditors on the line and see if you can devise a payment plan amongst yourselves.
7. Attorney – Hire an experienced and dedicated bankruptcy attorney. Always. We cannot stress this enough, hence the repetition.
8. Choice – Consult your attorney and choose which bankruptcy plan suits you best.
9. File – Finally, file for bankruptcy with guidance from your bankruptcy lawyer.

What not to do before bankruptcy?

Now you know the basic steps when preparing for bankruptcy. But, you should also know what not to do, ever, prior to filing for bankruptcy. Avoid these dreadful pitfalls at all costs, and bankruptcy should provide you with the freshest of starts:

1. Don’t lie – Lying about your existing assets could get your case dismissed, and rather quickly so.
2. Not Consulting – Always, and we mean it, always consult a bankruptcy attorney. These professionals are invaluable in the process of filing for bankruptcy.
3. Don’t give assets away – This is a huge red flag for the people who will be deciding whether or not to approve your bankruptcy claim.
4. Don’t take new debt – Under no circumstances should you take new debt prior to filing for bankruptcy.
5. Not researching – Not doing proper research is one of the biggest mistakes people make when filing for bankruptcy. Inquire into which debt bankruptcy covers, and which it does not.
6. Don’t rush it – Don’t dive headfirst into bankruptcy. Take your time, do your research, consult a bankruptcy lawyer, and then file.
7. No taxes – Finally, never forget to file an income tax return. Always file your taxes before filing for bankruptcy if they’re due.

“Who is the leading bankruptcy attorney in Escondido to help me out?”

If bankruptcy is on your mind, then only two names should cross your mind – Chang & Diamond. We are the leading experts in bankruptcy law and we will give it our all to guide you through the bankruptcy process safe and unharmed.

Although Lake Hodges Pedestrian Suspension Bridge is closed, and you can’t walk across it to clear your mind, perhaps you can do something else – contact us and see just how we can help!