People tend to have a misinformed point of view when it comes to bankruptcy. The stigmas and confusion that society has created have prevented countless people from filing for bankruptcy despite the advantages to their financial situation. Filing for bankruptcy is not the right option for all people, but for many others struggling to get out from under the heavy burden of debt it provides an opportunity for financial relief.
Bankruptcy does have a significant impact on a person’s credit score and credit report, so it is not an action that should be taken lightly, but in many situations the long-term advantages of filing for bankruptcy far outweighs the cost. Bankruptcy is a detailed legal process and should be handled carefully and professionally. If you have made the decision to file, here are some smart actions you should take to set yourself up for a successful outcome.
Don’t Accumulate Even More Debt
If you are planning to file for bankruptcy, you should be careful not to incur even greater amounts of debt beforehand. As your case is being considered, the courts will look into your financial actions surrounding the filing, but creditors can also claim that you took out a new loan or ran up your credit card balance with the intention of not paying it back. These actions can affect approval of your case, but even if it doesn’t, there is a good chance that this debt will not be discharged at the end of your liquidation or repayment period and you will continue to be responsible for that new debt.
Don’t Make Big Payments Before Filing
It may seem like the right thing to do, but making large or abnormal payments can be counterproductive to your filing. Continue to make your usual, monthly payments on every bill or obligation, but avoid paying off a whole balance as this can lead to complications after you have filed.
Don’t Make Big Purchases Or Transactions Either
As a rule of thumb, you should avoid any unusual financial actions. Continue to pay for necessary expenses and monthly bills, but avoid any big purchases or transactions. Do not buy anything expensive or extravagant. Do not transfer money or assets to a friend or relative. Do not make big changes in your personal business. Do not pull money from your retirement funds. These actions can be seen as fraud and cause you more trouble.
Don’t Hide Information
Filing for bankruptcy requires you to fill out an extensive amount of paperwork in which you must provide complete information on your financial situation. Be careful that all the information you enter is accurate, up-to-date, and complete. Do not leave out or attempt to hide any information, but also be sure that you do not accidentally omit information. Look over your paperwork and be certain that there are not any inaccuracies that could cost you your case.
Don’t Keep Your Bankruptcy A Secret
Make sure that you inform creditors of your bankruptcy as soon as possible. You can avoid or even stop harassing collective actions from creditors by filing for bankruptcy. By informing creditors of your plans, you can reduce the risk of them taking damaging actions against you such as garnishing wages or even seizing assets.
Fair Fee Legal Services provides the best bankruptcy value in Las Vegas. Contact us today for experienced representation that will guide you through all necessary and beneficial actions for a successful outcome and freedom from debt.
Fair Fee Legal Services
8665 South Eastern Avenue, Suite 101
Las Vegas, Nevada 89123