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 actions should I take before filing for bankruptcy?
First of all, 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. With this, you must complete this course within 180 days of your initial bankruptcy filing. Further, you must supplement your petition with the certificate of completion you receive at the conclusion of this course. Another note is that this course must be taken at an agency already approved by the United States Department of Justice.
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. This may be as simple as them developing a manageable personal budget on your behalf, and teaching you money management and debt management skills to implement moving forward. Or, in more serious financial situations, they may suggest a debt consolidation plan, a debt settlement or loan modification plan with your lenders, or otherwise.
What mistakes should I avoid making before filing for bankruptcy?
Now that you understand the most pivotal step you must take before filing for bankruptcy, you must learn what mistakes to avoid so to not jeopardize this opportunity for financial relief. Without further ado, some simple tips we may advise you on read as follows:
- You should not file for bankruptcy too closely to your previous bankruptcy filing and forfeit your discharge rights.
- You should not wait too long to file for bankruptcy, like until after a creditor attaches a lien to your property.
- You should not withdraw retirement funds to pay off your debts that bankruptcy would otherwise wipe out.
- You should not purchase any luxury or unnecessary items within 70 to 90 days of your initial bankruptcy filing.
- You should not attempt to sell, transfer, or hide assets for safekeeping before filing your bankruptcy petition.
- You should not file for bankruptcy if you anticipate receiving an inheritance or other substantial assets soon.
If you have any outstanding questions yet to be answered, please ask a talented Rockland County bankruptcy attorney. Anyone at The Law Offices of Allen A. Kolber, Esq., P.C. is willing and able to offer the support you need.
