Deciding to file for bankruptcy is a big decision in anyone’s life and it should not be made impulsively. There are a variety of factors to consider when determining if bankruptcy is right for you. Consulting with a Bronx bankruptcy lawyer before making a final decision is almost always your best bet. However, once you have decided that bankruptcy is your best or only option, there are steps you should take to prepare for what’s to come.
Preparing for bankruptcy
Below is a list of steps you can take to prepare for bankruptcy in the Bronx:
- Your retirement accounts. Most retirement funds are protected in bankruptcy, so it’s important you don’t withdraw money from your retirement to pay off debt before you file.
- Don’t move or hide assets. Some people try to sell, move or hide their assets right before bankruptcy. Doing so can put you at risk of being denied a discharge of your debts, and in some cases, you can face criminal charges.
- Don’t take on new debt. This seems obvious since debt is what got you in trouble in the first place, but you should understand that taking on new debt a few months before bankruptcy can be very problematic, especially if you use the credit to buy luxury items or anything that’s not considered a necessity. Creditors may argue that you had no intention of paying back the debt, which is fraud and will jeopardize your bankruptcy.
- Stop paying your debts. You will have to keep paying your mortgage and car payments, but you should stop paying unsecured debts such as credit cards. Don’t single out certain debts to pay, and don’t repay family members or friends who may have loaned you money.
- File your taxes. Tax returns are vital when it comes to determining your past and current income and asset holdings. If you haven’t filed taxes in the years leading up to your bankruptcy, it will be very difficult to move forward.
Finally, you should consult with an experienced bankruptcy attorney and be as honest and forthcoming about your situation as possible. Withholding information from your lawyer can only come back to hurt you down the road. A knowledgeable Bronx bankruptcy lawyer offers credit management services and long-term solutions to your debt issues.
Contact an experienced bankruptcy lawyer in the Bronx
At the law offices of Thomas M. Denaro Esq., we have a genuine desire to help clients overcome their financial problems. If you are considering filing for bankruptcy in the Bronx or just want more information about the process, contact the law offices of Thomas M. Denaro Esq. today at (718) 863-6000 for a free consultation or contact us online.