2 Things to Do Before Filing Bankruptcy

Most people don't prepare for bankruptcy, they just wait until the last minute to do it. If your thinking about bankruptcy the time is now to prepare. Read more to find out how.

There are many things you must do before filing bankruptcy, were only going to look at two. Get to know the procedure before you make any hasty decisions. Bankruptcy stays with you for years after your finished, sometimes we have no choice, but we can prepare if we must file.

Two Things You Want To Do Before Filing Bankruptcy

1. Go back Time - the court will ask for records going back 4 months from the filing date. Knowing this allows you time to save the records required and you can stop charging so there are no disputes. If you can it's better to save you records 6 months back just in case.

2. Disputes - the credit card companies can dispute items if they look intentional. What we mean is items that were not necessities like jewelry, electronics, high priced good, things that were purchased within the last months before filing bankruptcy, things that looked like you tried to sneak them in before the filing.

If you hire an attorney, which is highly advisable, they will inform you of the other required paperwork's. In personal bankruptcy you have two chapters, 7 and 13. Depending on which one you file, some assets could be exempt from liquidation.

How Long Does Bankruptcy Stay On My Credit?

Bankruptcy stays on your credit for 10 years, you can't file again for 8. Generally you can rebuild your credit in about 2 years, lenders will still try to stick you for higher rates because of bankruptcy, but don't put yourself in a position to need credit and it won't matter.

To read more about this process.

Go to Preparing For Bankruptcy. This is an important decision. Get informed, get more answers and most of all get on with life. You have choices, it's time to use them. For general debt information go to the Debt Hub.