Preparing for bankruptcy is not something most people spend much time considering. They file for bankruptcy as a last resort or act of desperation, finally reaching their limit regarding calls from creditors and mounting fees. Unfortunately, if you do not prepare for bankruptcy, your choice to file can backfire.
If you believe bankruptcy might be in your future, take some time to assess your situation and discuss the details of it with a Tampa bankruptcy attorney. Making the right choices in the days and weeks leading up to your filing can save you time, heartache, and confusion, and will help you ensure the process goes smoothly and your request for bankruptcy is granted.
What are some of the things you should avoid prior to filing for bankruptcy?
Waiting Too Long to File
Though it is important to consider your options before you file for bankruptcy, it is also important that you not take too long to make a decision. If your monthly income is less than the amount you owe to creditors each month, you are headed toward financial disaster. The sooner you take smart action the better.
Using Savings to Pay Debt
There are some instances in which it pays to pull money from your savings to pay a debt, but this is not a long-term solution. However, if you are consistently dipping into retirement savings to make ends meet, you are on a slow collision course toward financial disaster. Choosing bankruptcy could save you in the long run, even if it is a difficult situation to face in the present.
Lying to Creditors
You might be tempted to juggle creditors and be dishonest with them, but this will get you nowhere. You are better off being open and up front. If you have lost your job or encountered another situation that makes it difficult to pay your bills, inform your creditors. Some of them are willing to work with you, but even if they do not, at least you are being honest. Also keep in mind you signed a contract to repay your debt when credit was extended to you – being dishonest could get you into legal trouble if you overstep the boundaries of your contract.
Going It Alone
It is possible to file for bankruptcy without an attorney, but it is a big mistake to do so. Bankruptcy laws are confusing and if you make a mistake during the process it can lead to a denial of your case.
Working with a bankruptcy attorney ensures your case is handled properly and that you receive the guidance you need throughout the process. A bankruptcy attorney can answer your questions and help you make decisions before and during the bankruptcy process.
For more information or to get a bankruptcy case started, contact Robert M. Geller at 813.254.5696 to schedule your consultation.