What you should do before filing for bankruptcy

What you should do before filing for bankruptcy

A negative connotation has commonly been associated with filing for bankruptcy. Deciding whether to file isn’t a matter that anyone takes lightly, and it doesn’t always come from frivolous spending. One study found that nearly half of bankruptcies were tied to medical expenses.

Bankruptcy is a way to help people buried in debt who don’t have the means to pay. Once debt starts piling on, it’s hard to stay afloat when the unexpected happens. Before filing for bankruptcy, there are a few things you can do.

Gather information

Bills may be overwhelming and hard to keep up with by the time you decide to file for bankruptcy. It’s important to have an accurate view of your current financial standing. Regardless of how difficult it may be, gather the following information:

  • All Outstanding Debts
  • Income Verification
  • Three Years of Tax Information
  • Property Records
  • Bank, Retirement, and Investment Account Information

Having all of your records together will help you get an accurate view of your assets and your financial outlook moving forward.

If you’re experiencing unmanageable debt, you may be wondering how to get ahead of it. In that case, learning more about the laws regarding bankruptcy can help you decide what’s right for you and how to move forward. Talk to any attorney who can explain your options and help you decide how to proceed.

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Amer Mustafa

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