Tying Up Loose Ends Before Filing Bankruptcy

Most first time bankruptcy filers have no clue about bankruptcy laws and do not understand the court proceedings. Most don’t even understand filing bankruptcy is a legal proceeding designed to protect both creditor and debtor and to allow the honest person or business to work their way out of a bad financial situation, or in some cases, to completely start fresh. These are all good reasons you might think twice before filing Pro Se, or without legal counsel. There are a lot of loose ends you need to tie up before filing for bankruptcy protection.

One of the loose ends includes removing co-signers on credit cards and other loan documents. Filing an individual bankruptcy could affect the credit of the co-signers and fixing the problem after you file can be costly. 

It is important to plan ahead, before filing for bankruptcy. Chapter 13 Bankruptcy enables individuals with regular income to develop a plan to repay all or part of their debts. 

Chapter 13 debt repayment plans allow a debtor to propose a repayment plan to make installments to creditors over three to five years. Some filers choose to purchase a new car during their plan because obtaining extra money for repairs is sometimes difficult. 

Many debtors also stop charging on their credit cards before they file. Although it may seem tempting to run up your credit card, the act may be considered fraud by the U.S. Bankruptcy Court. 

Bankruptcy fraud is a crime and not only do you lose your right to file bankruptcy, you may be charged with a crime and suffer severe penalties. 

Contact a bankruptcy lawyer if you have questions about all of the loose ends that may be to be reviewed prior to filing for bankruptcy. If you need of relief from the stress of debt and you live in or around the metropolitan area of Fort Lauderdale, Florida, contact us at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area who will answer your bankruptcy questions.

The following two tabs change content below.