When creditors are breathing down your neck, it can be hard to make sound financial decisions. When the pressure is on, some people take drastic steps that jeopardize their future ability to eliminate debt.
If you're leaning towards filing bankruptcy to help eliminate your debts, make sure to mind your p's and q's before filing. There are certain things that the court requires you to do - and not do - in life before filing bankruptcy in court.
When considering the dos and don'ts before bankruptcy, avoiding actions on the "prohibited" is quite important. Why is this so? Because making poor decisions before bankruptcy may prevent you from getting debt relief.
So, here are some decisions to avoid:
Don't assume that bankruptcy will spare you from all foolish purchases. Before filing bankruptcy, make sound financial decisions. Rash purchases, financial sleights-of-hand, and sneaky credit tricks will usually come back to haunt you.
While filing bankruptcy may help eliminate some or all of your debt, there are a few steps you may take before bankruptcy that could help ease the process:
Setting a strict budget could help ensure that your finances are improving before you enter bankruptcy. And by determining the value of your assets, especially your home, you'll be better prepared for the bankruptcy process.
If you'd like to connect with a local bankruptcy attorney in your area for a free consultation about the proper steps to take before filing bankruptcy, just fill out the quick case review form below.