When bankruptcy is on the table, it is important to understand the big picture. Staying educated on how bankruptcy can affect your finances and family in the present and the future can be extremely helpful. You should also be aware that your actions prior to filing for bankruptcy can have an impact on your filing. The more insight you have on the overall process of bankruptcy, the more successful your filing will likely be. That is why we are here to keep you informed!
Our blog outlines some important tips on what to do and what to avoid when preparing to file for bankruptcy, chapter 7 bankruptcy or chapter 13, or while in the middle of a filing. These dos and don’ts should help you pursue the positive outcome you are looking for!
Make Sure That You Do:
- Keep track of all financial documents, such as tax returns and bank statements.
- Continue paying on any loans you want to keep the collateral of (car, home, etc.).
- Stop any automatic payments for debts you plan to discharge (check with an attorney first).
- Be as honest and straightforward about your finances as possible on your filing.
- Close checking and saving accounts where you hold credit cards.
- Talk with an attorney about your bankruptcy filing before moving forward.
Make Sure That You Don’t:
- Continue using your credit cards or take out more loans.
- Transfer or sell money or assets to family members or friends.
- Expect bankruptcy to eliminate all financial woes.
- Selectively pay back loans or debts, such as to friends or family.
- Talk with creditors or accept harassment once you’ve filed.
- Forget or exclude a creditor from your petition.
- Take funds out of your retirement plan to pay off bills.
- Try to hide any assets or debts from the process.
If you are unsure what steps to take in the filing process or are concerned that you may have already committed one of the “don’ts”, make sure you talk with Alexander Hilton & Associates right away. Our Oklahoma bankruptcy attorney can help guide you through this time and ensure that you secure the best possible results from your filing.