Affordable Bankruptcy Courses Blog

6 Tips if You Are Planning to File for Bankruptcy

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This is a guest post by Andrew who writes for financial communities.

If you are having problems paying off your debts, it is important for you to consider the different options you have and the ones you can try out in order to pay down the debts. However, there are various such situations in which the simple debt relief options may not work in your favor. In such a situation, you may have to opt for the last resort which is bankruptcy. However, before you can file, it is important for you to get some details on the same, and do some very important tasks, too.  It is important for you to go on reviewing the monthly expenses, so that you can start saving at least some, and lower the expenses too. This may help you with managing the pre-bankruptcy situation.

  1. Check if all of the tax returns were filed – If you are going to file bankruptcy, you will be required to provide the details of the tax return, with regards to the previous year, and also may be the current year too if asked for.
  2. Save the income proof and the pay stubs – As per the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), it is important for you to pass the Means Test.  This test is mainly based on local standards, with regards to the expenses.  Now, the Means Test uses the average of your gross income based on 6 months.  Thus, you are required to provide details of the pay statements for the last six months.
  3. Start using the credit cards responsibly – It is not at all practical for you to incur more debts when you are not in a situation where you can pay down your bills.  So, it is not at all advisable for you to use the credit cards. This is simply going to aggravate your problems.
  4. Consult a good and reliable bankruptcy attorney – It would be better for you to consult an attorney who has not only experience in this field, but also is a reliable person too. He/she may guide you through the whole process, because bankruptcy in itself is quite complex.
  5. Don’t use the money from the retirement plans – It is not at all wise of you to use the money from the retirement plans to pay down debts, even if you would like to avoid bankruptcy. You don’t want to risk not having any money that is going to help in securing your future.
  6. Get to know the options you have under bankruptcy – It is important for you to consider the different options under which you can file bankruptcy, one of the options for filing personal bankruptcy is Chapter 7 and the other option is Chapter 13.

So, these are just a few things you need to do and follow if you are planning to file bankruptcy and hopefully they will help you get on the right track.


Author: affordablebankruptcycourses

Based in Plantation, Florida, Affordable Bankruptcy Courses (ABC), together with Advisory Credit Management (ACM) offer EOUST approved Pre-Bankruptcy Credit Counseling and Pre-Discharge Debtor Education Courses. ABC prides itself on being the low cost solution and offering the required bankruptcy courses 24 hours a day, 7 days a week, in English or Spanish, and there’s no phone call required for certification.

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