Bad Credit Finance

What?? Prepare for bankruptcy?  Why would I do that?

No one likes the thought of filing a bankruptcy case.  Therefore, no one likes the thought of preparing to file a bankruptcy case.

But, let’s be real here:  Almost everyone who in fact does file knows in their gut well in advance that they need to file sooner or later.

That being said, it’s infinitely better for you to properly prepare and know some do’s and don’ts for the run up to the actual filing:

DO:

1. Get/save at least 3 months (6-12 is better) of all statements for your bank/credit union account(s) and for your credit card account(s).
2. Get/save all of your paystubs, pay advices, etc. (anything an employer gives you that shows your earnings for a given pay-period) for the latest seven months.
3. Save the last 3 bills and any other written communications from each creditor.
4. File all tax returns and get/save the returns for the last 3 years.
5. Get or remain current on secured debts for stuff you want to keep after the bankruptcy, like cars and your home.
6. If you own a home or other real property, find out from the local county recorder’s office whether there are any liens on the property.

DON’T:

1. Don’t continue to use your credit card(s) or incur any new debt UNLESS advised otherwise by your bankruptcy attorney.
2. Don’t pay any debts owed to family, friends or business associates UNLESS advised otherwise by your bankruptcy attorney.
3. Don’t pay ANY unsecured creditor more than a total of $599.99 in the latest 3 months.
4. Don’t try in any way to get things “out of my name,” as you will only make things much worse.  Wait until you talk with a bankruptcy attorney before transferring or selling anything.

There are, of course, many other do’s and don’ts that will be applicable to your particular circumstances, but if you have followed the directions above your bankruptcy attorney will thank you and your case will run more smoothly.

Here’s hoping that you never need to file, but if you do, please take the time to properly prepare!

Mark Emmett, Utah Bankruptcy Lawyer

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