Preparing For a Bankruptcy Filing

Bankruptcy can be a useful resource for those who need to get out of severe financial hardship and begin on a new path to a fresh financial start. Whether you are considering filing for bankruptcy because of credit card use, medical bills, or other debts, it’s important to prepare beforehand so that you have the best chances of being approved to operate under a bankruptcy chapter.

Gathering Bills or List of Debts

During the bankruptcy process, you will be required to disclose your financial history and how you plan to recover over time. Compose a list of debts and gather copies of relevant paperwork for them. If you have not reviewed your credit report before, you should do so using one of the many reliable credit report companies available online. 

Halt Credit Card Use

If you decide to pursue bankruptcy, then you need to be wary of how you are currently spending money. If you suddenly rack up more debt or max out credit cards, the court is likely to frown upon this behavior (especially if you used it on luxurious items). If you are caught up in a loan cycle and have to borrow money for necessities such as food, housing, gas, or medications, be sure to inform your lawyer.

Seriously Assess Spending

When filing for bankruptcy, you should earnestly assess your financial habits. If overzealous spending was what landed you in bankruptcy in the first place, then you may find yourself in that situation again if nothing changes. It’s imperative that you review your spending habits and create a realistic plan for how you’re going to manage your money now and into the future. 

As our bankruptcy lawyer friends from Martin Wren, P.C.  understand, being in a devastating financial situation can affect anyone’s mental health and personal relationships. Those who are preparing for bankruptcy can take steps now so that their claim is as strong as possible for approval.