If you are facing financial trouble, it can feel like the end of the world. People do not realize that filing for bankruptcy is a viable solution to their problems, can alleviate the financial stress, put an end to collection calls and even raise your credit score.
Here are some tips to remember along the way:
Do not be afraid of filing bankruptcy. Debt can be overwhelming and sometimes instead of facing it head-on, people bury their heads in the sand. This is the worst thing you can possibly do. This approach could result in you facing numerous lawsuits, automatic judgments against you even wage garnishment. By filing for bankruptcy protection you are getting a second chance and taking control over your finances once and for all.
Avoid running up new debt prior to filing. Do not make the mistake of running up a lot of new debt before filing for bankruptcy. The court will take all of your spending into account, including recent debts incurred, and the judge may not be willing to waive debts if it appears that you are trying to “game the system.” Make sure that your spending habits reflect a true desire to change.
Be aware of ALL of your options. For example, you may want to consider credit counseling. There are some reputable non-profit organizations that can help. With their assistance, you can reduce the payments you have to make and even get some of the interest removed from your debts.
Hire an experienced bankruptcy attorney. The laws surrounding personal bankruptcy are complex. If you feel unsure about the steps to take moving forward, consulting with an attorney may be your best option. Many offer FREE consultations. An attorney can be the guiding hand you need to make the process go as smooth as possible. When meeting with your bankruptcy attorney, make sure you have all of the necessary paperwork with you (i.e. – loan documents, credit card bills and any other relevant financial documents).
Create a post-bankruptcy budget. When you file bankruptcy, you want to avoid finding yourself in the same financial predicament that got you there. Planning for and making a post-bankruptcy budget is a smart idea. When you can create such a budget and stick to it after bankruptcy, you are far less likely to find yourself in the same position in the future.
If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.
Related Resources:
http://techfeatured.com/automotive/1198/how-to-avoid-the-pitfalls-of-personal-bankruptcy