Your current financial situation may become dire enough that your judgment gets clouded. That is, in a desperate attempt to save yourself and your family from total financial ruin, you may jump to declare bankruptcy. However, in the long run, doing this hastily or prematurely may not work in your best interest. After all, this is a serious decision that first requires deep consideration. With all these things considered, please follow along to find out the actions you should take before filing for bankruptcy and how a proficient Rockland County bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq., P.C. can ensure you are well prepared before bringing your petition forward.
What Should You Do Before Filing for Bankruptcy in New York?
Before filing for bankruptcy, it’s important to understand that this process entails a number of legal requirements and financial disclosures. Taking the proper steps beforehand can help avoid mistakes that can ultimately delay your case or impact your ability to receive a bankruptcy discharge.
First and foremost, you must understand that attending a credit counseling course is a mandatory step that any debtor must take before formally filing their bankruptcy petition with the court. This credit counseling requirement is mandatory under federal bankruptcy law, meaning filers in Rockland County and across New York must adhere to this rule.
Complete a Required Credit Counseling Course
Prior to formally filing for bankruptcy, you must complete this course within 180 days of your initial bankruptcy filing. Once you successfully complete the course, you will receive a certificate that must be submitted to the bankruptcy court in addition to your formal petition
Additional important details include:
- This course must be taken at an agency approved by the United States Department of Justice
- The course may be taken online, over the phone, or in person
- The certificate of completion must be filed in addition to the petition
- Failure to complete this required course may lead to the dismissal of your bankruptcy petition
What Happens During Credit Counseling in Rockland County?
Credit counseling is intended to help those filing understand their financial situation. During this process, filers in Rockland County communities like Pearl River, Suffern, and Nyack will meet with a counselor to review their income, debts, and assets to determine if bankruptcy is in their best interest for their unique circumstances.
Generally speaking, a credit counseling course is a session with a certified counselor who may review your assets and debts and possibly recommend that you pursue alternatives to bankruptcy instead. It’s important to note that just because a credit counselor finds an alternative solution, it does not mean you have to follow it. As such, you will still be able to proceed with bankruptcy if that is what you wish.
What a Credit Counselor May Review
- Current income, assets, and outstanding debts
- Creating a personalized budget
- Exploring money management strategies
- Explaining available debt management or repayment options
In some instances, the counselor may offer alternative options to bankruptcy, including
- Debt consolidation plans
- Negotiated debt settlement arrangements
- Potential loan modifications with creditors
Common Mistakes to Avoid Before Filing for Bankruptcy
Once you understand the most pivotal step you must take before filing for bankruptcy, it is equally important to avoid certain actions that could potentially jeopardize this opportunity for financial relief.
Financial Actions That Could Complicate Your Bankruptcy Case
- Filing for bankruptcy too soon after a prior filing
- Waiting too long to file
- Withdrawing funds from retirement accounts to pay debts that may be eligible for discharge
- Making unnecessary or luxury purchases within the 90 days before you file
- Attempting to sell, transfer, or hide assets
- Filing for bankruptcy when you expect to receive an inheritance or a large asset in the near future
Contact an Experienced Rockland County Bankruptcy Attorney
If you are considering filing for bankruptcy, it is in your best interest to connect with an experienced Rockland County bankruptcy attorney with the Law Offices of Allen A. Kolber, Esq., P.C. Our dedicated legal team understands that preparing for bankruptcy is just as important as carefully navigating a filing, which is why we will do everything in our power to assist you through these difficult times. When you need help, do not hesitate to contact our team today to learn how we can represent you.
