what to do before speaking with a bankruptcy attorney

All bankruptcy petitions involve expense estimates at the time of filing the case. Before scheduling a meeting with a bankruptcy attorney, review your bank statements to get a clear picture of your expenses. This way, you’ll know whether you have any disposable income that can pay up your creditors.

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How do I prepare to file bankruptcy?

Mar 23, 2020 · So, if you find yourself in economic distress, DO NOT do any of the following before you speak to an experienced bankruptcy attorney: Pull money out of, or borrow against, a retirement account . You may be able to keep 100% of your retirement if you file bankruptcy while getting rid of all of your unsecured debt.

Can I talk to my creditors after filing bankruptcy?

Your bankruptcy attorney might provide a list of documents that you should plan to bring to your first meeting. If for some reason they do not, this list will get you off to a good start and help speed up the process. Copies of your driver’s license and social security card. Your tax returns from the last two years.

What can a bankruptcy lawyer do for You?

Other Articles by the Author. DO take your Credit Counseling course, online or over the phone. This takes an hour and costs about $25. You must take this before you can file a ... DO begin to gather your financial documents, including your proof of income, bank statements, two years of taxes, ...

What are the DOS and Don’ts before filing bankruptcy?

May 28, 2021 · Review your expenses. All bankruptcy petitions involve expense estimates at the time of filing the case. Before... Engage an attorney-Don’t wait!. Even when you’re not ready to file for bankruptcy, you’ll benefit immensely by speaking... File your tax returns. Depending on your state and where you ...

What do bankruptcy lawyers need to know?

In order to help you best, your bankruptcy lawyer will need to know about your life and finances. They will want to know what has brought you to consider bankruptcy , such as credit card debt, difficulty paying a mortgage, medical bills, and so on. They might also ask: If you’re married. If you have children. How much money you and your spouse make.

How to find out if you are going bankrupt?

In order to help you best, your bankruptcy lawyer will need to know about your life and finances. They will want to know what has brought you to consider bankruptcy, such as credit card debt, difficulty paying a mortgage, medical bills, and so on. They might also ask: 1 If you’re married 2 If you have children 3 How much money you and your spouse make 4 How much money you’ve made over the last six months 5 If you own a business 6 If you have any assets, and if so, what they are worth 7 If you’ve recently sold or transferred any property (see what not to do) 8 If you owe back taxes 9 If you are behind on child support or alimony payments 10 If any creditors have judgments against you 11 What you hope to achieve through bankruptcy

What to do if you aren't sure about something?

If you aren't sure about something, contact your attorney for guidance. There are also some things you should avoid doing. If you find you've already done some of the things to avoid, let your attorney know right away. If you try to undo your actions, you could actually make the situation worse.

Can I use my credit card before filing bankruptcy?

Speak with your attorney prior to doing this. DO NOT use your credit cards or acquire new debt. Unplanned medical debt may be an exception, as you may not have a choice about incurring the debt. But if you use credit shortly before filing bankruptcy, you may end up having to repay some or all of that debt.

Can I withdraw money from my retirement account?

DO NOT withdraw funds from your retirement accounts to repay debts without discussing this with your attorney. This is almost always a bad idea. DO NOT transfer any assets (real estate, car, money, or anything of value) to family or friends, without first contacting your attorney.

Can I open a new bank account if I owe money?

Your attorney may also ask for copies of bills and collection letters, as well. DO consider opening a new bank account, especially if you do your banking somewhere that you owe money. The bank may close your account when you file bankruptcy, so it's a good idea to already have a new bank account set up when you file.

What do you need to do before filing for bankruptcy?

Thus, before filing for bankruptcy, it is important that a debtor take the following steps to prepare: Compile financial records: Compile a list of property, debts, assets, income, liabilities, and expenses. Keep in mind that debts, such as federal student loans, child support, alimony, and taxes are not dischargeable.

How to decide if you should file for bankruptcy?

A person who is debating whether or not to file for bankruptcy should consider a number of factors before making their final decision, including: 1 Whether there are other alternatives available to pay down their debts; 2 The type of bankruptcy they intend to file; 3 Whether bankruptcy will solve their problem since some debts cannot be discharged through a bankruptcy proceeding; 4 The property they may lose during the process; 5 How much the entire process will cost; 6 How long the entire process may take; 7 Whether they can accept the fact that their financial situation will become public knowledge; and 8 If they are able to live with the idea of having bankruptcy affect their credit and ability to obtain loans for possibly the next 10 years.

What can a lawyer do for you?

Your lawyer can help you assess your options, explain the potential benefits or risks, and assist you in preparing and filing all necessary paperwork. Your lawyer will also know what type of bankruptcy you should file for and can represent you at any bankruptcy proceedings. Jaclyn started at LegalMatch in October 2019.

How long does bankruptcy stay on your credit report?

Filing for bankruptcy can have significant consequences and will remain on your credit report from anywhere between seven to ten years.

What is Chapter 11 bankruptcy?

Chapter 11 bankruptcy filings are used for businesses. For the purposes of this article, however, the discussion will focus on Chapter 7 and Chapter 13, which primarily deal with individuals. Before filing Chapter 7 bankruptcy, a debtor will be subject to the “means test”.

How long does it take to get credit counseling before filing for bankruptcy?

To be safe, the debtor should complete this process within 180 days before filing.

What is the second test for bankruptcy?

If their income is above the average, then a second test will be done that measures the debtor’s income versus their essential expenses. The court will use these outcomes to determine eligibility. Before filing Chapter 13 bankruptcy, a debtor should check that their debts do not exceed a certain amount.

What happens if you don't file bankruptcy?

If you don't file all of the paperwork, the bankruptcy court might dismiss your case, or you might have to file additional papers to correct the paperwork and pay more fees. If you leave a creditor out, that debt might not get discharged. And, if you forget to include an asset, the Chapter 7 trustee might find it and take the property.

How often can you file for bankruptcy?

Bankruptcy works well to wipe out debt; however, you're only entitled to receive a bankruptcy discharge —the order that wipes out your debt—every so often. So it's a good idea to examine whether now is the time or whether you might need to file sometime in the future. Specifically, you can receive a Chapter 7 discharge: 1 once every eight years, or 2 six years after a Chapter 13 bankruptcy filing.

Why is filing a tax return important?

Your tax returns are crucial to determining your current and past earnings and asset holdings, as well as satisfying potential priority tax claims. Without your returns, completing your paperwork and (if applicable) a Chapter 13 plan will be next-to-impossible and will stop your bankruptcy in its tracks.

How often can you file for Chapter 7?

Specifically, you can receive a Chapter 7 discharge: once every eight years, or. six years after a Chapter 13 bankruptcy filing.

What is the FBI?

The Federal Bureau of Investigation (FBI) investigates bankruptcy crimes, so bankruptcy court is not the place to be less than forthright. Most bankruptcy lawyers can find an appropriate solution to your problem. If you're not sure about your actions' potential ramifications, talk to a bankruptcy attorney first.

How long before bankruptcy can you get a credit card?

If you ran up debt during the 70 to 90 days before filing bankruptcy, beware (unless it was for life necessities, such as food, clothing, and utilities). The creditor might object to your discharge by arguing that you took out the loan without any intention of paying it back (called fraud). As a general rule, if you took out cash advances or used a credit card to buy a luxury item within 70 to 90 days of filing bankruptcy, then you've committed "presumptive fraud" and might not get to discharge the debt.

Can you file Chapter 7 bankruptcy again?

If you already filed a Chapter 7 bankruptcy, you wouldn't be able to do so again. A creditor could garnish your wages (take money out of your paycheck), levy (seize) the funds in your bank account, or take valuable property. Less effective Chapter 13 bankruptcy options would likely be available.

What to do if you get money back from a lawsuit?

If you had a lawsuit and got money back it is important to speak with an experienced bankruptcy attorney before spending that money. Put it in a separate account and speak to your lawyer before using it.

Can you charge credit cards before filing bankruptcy?

Prior to filing bankruptcy it is important to stop charging on your credit cards. Many people think they can charge on their credit cards and then file bankruptcy. This is false. If you knowingly charge on your credit cards with the intent to file bankruptcy then you are committing fraud. The bankruptcy court has a 90 day look back period. Thus, anything bought within the three months of filing bankruptcy can be deemed as fraudulent. Thus, the bankruptcy court will either make you return the items or pay for the items that you charged during that period.

Preparing For The Attorney’s Questions

• Most people show up in an attorney’s office because they need help with one of a small number of problems—and the attorney will be aware of this pattern. For instance, when a bankruptcy attorney asks you what prompted you to call, it’s likely that you’ll say that your debts are piling up and that the stress is becoming unbearable. But you could be facing one of the following situati…

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Gathering Your Documents

Preparing Your Questions

Questions For Your Attorney