No one looks forward to having to file for bankruptcy, but with the help of a good lawyer, it’s certainly possible to come out the other side better prepared for the future than before. Before hiring a bankruptcy lawyer, however, make sure you have all your records gathered together in one place. There will be a lot of paperwork to file, and everything you claim has to be proven.
Once you have everything in place and have hired a bankruptcy lawyer, they will advise you on which type of bankruptcy to file. Whether you choose Chapter 7 or Chapter 13, here are some tips to help make the most of your situation.
Bankruptcy protection will prevent any creditors from harassing you, which is both a blessing and a curse. It’s definitely less stressful to not be bothered so often by creditors, but unfortunately this can also be a temptation to spend more. During bankruptcy proceedings, it’s best to completely avoid spending on credit, but if you absolutely must, contact your attorney first. There are definitely essential things that require credit purchases sometimes, but you don’t want the bankruptcy trustee to think you’re intentionally building up your debts, just to try to discharge them later. Spending habits will have to change anyway, so why not start right now?
Sometimes bankruptcy is unavoidable, and there was nothing you did to cause it. Sometimes, though, it can be as a result of expensive habits like excessive shopping or gambling, and other forms of living beyond your means. Many times it’s something as simple as not having a planned-out budget. It’s a worthwhile endeavor to get a partner involved, or to have a financial planner take a look at your finances, to help you live within your means and put some money into savings each month. Not only will this help you get out of bankruptcy successfully, but it will set you up for future success.
Society still places a large stigma on bankruptcy filings, so you may find it hard to cope with societal pressure, or even personal pressure. If this is the case, you should look into a bankruptcy counselor. They are specifically trained to help with the adjustment back into financial independence after a bankruptcy filing.