There are many common misconceptions regarding the bankruptcy process that can negatively impact how your case proceeds. Unfortunately, you’ll find that if you do not take the necessary steps to prepare for this process, it can cause issues and delays. As such, doing what you can to organize your assets before filing is critical. The following blog explores the steps you can take to prepare for bankruptcy and why working with a Memphis, TN consumer bankruptcy attorney to help you through these complicated times.
How Should I Prepare for Bankruptcy?
Generally, one of the most important things you can do to prepare before filing for bankruptcy is to begin gathering pertinent information. This can help you stay organized and reduce stress and delays during this process. You should gather information for all outstanding debts in your name, all assets, tax returns, and any additional financial information that you have.
The next step you can take is to limit your spending in the months leading up to your filing. While many assume they can make purchases and then write them off during bankruptcy, this is far from the truth. In fact, if you make large purchases and try to include those debts in your filing, the court will consider any luxury purchases made on a credit card within 90 days to be fraudulent, even if the creditor has no proof of fraud.
In addition to refraining from making luxury purchases, you should limit your spending and stick to a budget. Unfortunately, many underestimate how easily it is to fall back into debt, so adjusting your lifestyle even before filing can help make bankruptcy more manageable and increase your chances of success following this process.
Do I Need a Lawyer to File?
Unfortunately, many assume that because bankruptcy does not legally require an attorney, they can pursue this process on their own. However, just because it is not a requirement doesn’t mean you won’t need legal assistance during this process. Bankruptcy can be incredibly complicated, stressful, and tedious. Additionally, if you make errors it could invalidate your chances of a successful filing. If you make errors during this process you may find that your case can be dismissed by the court.
If you are ready to file, it’s in your best interest to seek the assistance of an attorney to guide you through these matters. The team at the Arnold Law Firm is ready to assist you when you make the decision to file. Our team will do everything possible to help make filing as simple as it can be and provide you with all the information you need to help ensure you make the most informed decision possible for your circumstances. Contact us today to learn how we can fight for you during these matters.
