Going through the bankruptcy process can be stressful, cause anxiety, and lead to sleepless nights. Having to file for bankruptcy is often seen as a last resort rather than the lifeline it should be, making the process feel much more daunting. However, it doesn’t have to be this way; you can achieve financial peace once again by filing for bankruptcy without the added stress. All you must do is implement certain strategies to help the process go smoothly.
To help you have a better experience, here are eight ways to help your bankruptcy filing go smoothly.
Gather and Organize
Organization is your ticket to success when preventing hiccups in the bankruptcy process. That is why when you are getting ready to file for bankruptcy, take the time to gather and organize everything you need for your case. You will want to ensure you have everything from recent pay stubs and tax returns to bank statements and loan agreements.
Although this process may cause a temporary headache if you don’t keep an organized filing cabinet, it will make the rest of your bankruptcy journey much smoother. By having all your paperwork in one place, you can avoid unnecessary delays and ensure that your bankruptcy petition is accurate and complete.
Pre-Bankruptcy Credit Counseling
Many people do not know that before officially filing for bankruptcy, you must go through pre-bankruptcy credit counseling. The reason for this requirement is to ensure that you understand all your financial options and confirm that bankruptcy is the best course of action for your situation.
Once you complete the counseling, you’ll receive a certificate that you must include with your bankruptcy paperwork. Getting this done early on can help keep your case moving forward without any unexpected roadblocks.
Close Extra Accounts
If you have opened many bank accounts over the years, now is the time to close them. The more accounts you have, the more complicated filing for bankruptcy can become. This is especially true for Chapter 7 bankruptcy, where a trustee is appointed to examine your financial transactions.
Ultimately, streamlining your accounts can make it easier to provide accurate information to the court and your bankruptcy attorney. Keeping only the essentials will help you avoid unnecessary scrutiny and ensure a smoother process overall.
Stop Using Credit Cards
Once you’ve decided to file for bankruptcy, it’s critical to stop all credit card usage immediately. Continuing to charge expenses can look like you’re trying to accumulate debt you don’t intend to pay, which can be seen as fraudulent behavior by the court. That can lead to complications, like certain debts being ruled as non-dischargeable, meaning you would still be responsible for paying them even after bankruptcy.
Instead, you will want to make the switch to cash or a debit card for necessary expenses to avoid any issues down the line.
Honesty is The Best Policy
Honesty will always be your friend when it comes to bankruptcy. To file and seek relief, the court requires you to fully disclose all of your assets, liabilities, income, and expenses. Attempts to hide your assets or failing to report certain debts can result in severe consequences, including the dismissal of your case or potential criminal charges.
To keep the process running smoothly, make sure to be upfront about everything. Full transparency will not only protect you legally but will also make it easier for your attorney to represent you effectively.
Creating a Realistic Budget
Making a budget isn’t just for people saving for big life purchases like houses and cars; it is also an essential part of the bankruptcy process. You will need to create a detailed budget if you’re filing for Chapter 13; part of that budget includes committing to a repayment plan for the next three to five years. However, budgeting isn’t just for Chapter 13 filers. A budget also helps you to regain control of your finances if you are filing for Chapter 7.
A realistic budget will allow you to prioritize necessary expenses, cut back on non-essentials, and show the court that you are serious about making a fresh start.
Keep Track of Communication from Creditors
Upon filing for bankruptcy, an automatic stay will go into effect, meaning creditors must stop contacting you for payment. However, it may take some time for them to receive notice of your filing. In the meantime, keep a log of any collection calls, letters, or emails you receive. If any creditors continue to harass you after being notified of your bankruptcy, inform your attorney immediately, as they can take legal action on your behalf.
Work with a Bankruptcy Lawyer
The most important step you can take to ensure a smooth bankruptcy process is to work with a seasoned bankruptcy lawyer. Trying to handle everything on your own can be overwhelming, and even a small mistake can lead to costly setbacks or even the dismissal of your case. A bankruptcy lawyer can guide you through every step of the filing process, from organizing your documents to representing you in court.
If you are searching for a Maryland bankruptcy lawyer, Adam M. Freiman is here to help!
Adam has over 25 years of experience in law and founded one of Baltimore’s most notable bankruptcy law firms. He now runs a smaller firm where he personally oversees each client’s case, eliminating the cycle of having clients deal with paralegals, which is common in many modern law firms. Contact our office today to learn more about how Adam can assist you with your bankruptcy case!
