Sometimes even the most careful financial planning can get blindsided by
troubles unforeseen, such as business failures or sudden illnesses that
rack up medical costs. In some situations, the only way to find stability
again is to file for
bankruptcy. As upsetting as it may sound, bankruptcy can actually be considered a
major success if done correctly. And the key to getting anything done
right is preparation.
Before you proceed with your bankruptcy case, consider these steps to prepare:
Semi-automatic stay: Filing for bankruptcy is supposed to create an automatic stay on your accounts
that prevent creditors from taking shares as they please. In some situations,
though, they might have a larger-than-expected window to continue to grab
money from you, even after you have filed. As everyone’s finances
are unique to themselves, you will need to talk to a professional bankruptcy
lawyer to determine if there are ways for you to protect your accounts
ahead of time.
Transferring accounts: A bank might not be able to collect on loans and credit debts after you
file for bankruptcy, but they can collect money from any savings or checking
accounts you have with them as well. To avoid this and retain more of
your hard-earned money, you may be able to transfer your savings and checking
accounts to another bank before you file for bankruptcy.
Utilizing utility set-offs: Certain utility companies require security deposits for their services.
If you file for bankruptcy before paying off any payments, not only can
they consume your deposit, but they might actually be able to demand that
you post a new deposit altogether. This one-two punch is known as a utility
set-off, and should be avoided whenever possible.
Switching to manual: Cease automatic payments on any sort of account you hold as soon as you
are certain that bankruptcy will be in your future. If you delay, companies
might still be able to grab a few additional payments from you after you
file for bankruptcy, usually due to slow account processing speeds.
Teaming Up with Someone You Trust
Bankruptcy is not a field you should go through alone. There are complications
just about everywhere, and the less you understand, the more trouble you
can encounter. Before you even file for bankruptcy, you should let our
Fort Worth bankruptcy attorney from The Pritchard Law Firm help you prepare.
Any step that might seem confusing to you is certain to be familiar to
us, and we can do everything in our power to help protect your finances
and your future wellbeing.
today at to learn why so many Texans trust us with their bankruptcy cases.