Advice You Should Know Before Filing for Bankruptcy

Bankruptcy doesn’t have to be a dirty word. With our expert advice, we’ll keep you on track. Be sure to visit our Facebook and Twitter pages for the most up-to-date advice on how to better yourself after bankruptcy.

Things to know before filing:

1. A huge mistake people make before filing for bankruptcy is maxing out their credit cards. If you can, avoid using your credit cards at least six months before you file, and ideally for a year prior. Also, do your best to pay the minimum payments on these cards for at least six months before you file.

2. Don’t let bill collectors tell you that you are ineligible for bankruptcy. Debt collectors do not want you to file bankruptcy because it means that they will not get the money you owe them. The only way to truly know if you qualify is to speak with a bankruptcy attorney.

3. Be extra vigilant about your spending habits until your hearing. Judges take a look at your entire financial picture, even the things you are doing right now. Try to show that you are now on the right track financially.

4. Include all of your financial information when filing for bankruptcy. Things that may not seem significant to you may actually be very important. Furthermore, include any lawsuits that are pending against you or other parties.

5. Remember that your credit is not necessarily ruined just because you filed for bankruptcy. It is important that once you have filed for bankruptcy you properly manage your finances. This is the only way that you are going to be able to rebuild your credit the right way.