Whether you’re looking to stop aggressive creditor collection calls or want to take control of your finances, bankruptcy can be an important step on your path to financial wellness. But it’s important to understand how to file for bankruptcy properly so that you can get the benefits and the fresh start you deserve. If you would like professional help with filing your bankruptcy consider contacting Cain & Herren bankruptcy lawyer. This article covers everything you need to know about filing for bankruptcy, including how to prepare your case and the hidden costs.
Get a Free Credit Report
The first step in filing for bankruptcy is to obtain a copy of your credit report. You can request a free report from each of the three major credit bureaus (Equifax, Experian and TransUnion). Having a clear picture of your current debt is crucial to filing for bankruptcy.
Make a List of Your Debts
Once you have your credit report, take the time to review it and make a list of all of your outstanding debts. This includes unsecured debts like credit card balances, payday loans and personal loans as well as secured debts like car loans, mortgages and home equity lines of credit. It’s also a good idea to include debts that aren’t listed on your credit report, such as medical bills and tax debt.
Don’t Transfer Property Before Filing
When you file for bankruptcy, it’s a crime to conceal assets from the court. If you move money or property around in the months leading up to your bankruptcy, it could result in the loss of those assets and other penalties. To protect your assets, it’s best to work with a bankruptcy attorney who can help you find strategies for keeping your most valuable items.
Don’t Run Up Debts – If you accumulate new debt in the 70 to 90 days prior to filing for bankruptcy, it can be difficult to have those debts discharged. Creditors are more likely to argue that you committed “presumptive fraud” by running up the debt just before filing and can prevent the discharge of those debts.
Do Disclose Large Payments – It’s also important to disclose any large payments made within the 3 months prior to filing for bankruptcy. This includes money you owe friends and family, even preferred creditors. If you fail to disclose these payments, the bankruptcy trustee may be able to sue those individuals for the amount paid and distribute it amongst your other creditors.
Be Ready to Pay a Bankruptcy Fee
Before heading to your local courthouse, call the clerk and find out how much the filing fee is and if there are any other requirements in your area. The clerk will also provide you with a copy of the bankruptcy forms and instructions on how to fill them out. Generally, you will need to provide the names and addresses of all of your creditors as well as the total amount that you owe them.
Depending on your situation, you may need to apply for a fee waiver or to pay the fee in installments after your bankruptcy is filed. Regardless, you must bring the filing fee with you to submit your petition with the court.
Cain & Herren, ALC
2141 W Vineyard St, Wailuku,
HI 96793, USA
+1 (808) 242 9350
cainandherren.com
