5 Best Practices For A Successful Bankruptcy

5 Best Practices For A Successful Bankruptcy

Consider Your Alternatives

The first step you want to take on the road to bankruptcy is to make sure that is the road you want to be on in the first place. There are many alternatives to bankruptcy that might work better for you. Bankruptcy can often be avoided just by setting up a stricter budget, enrolling in a credit-counseling course, or making sacrifices in terms of spending. It is a good idea to discuss these options with your lawyer prior to filing so that you know what all of your options are and can make an informed decision based on research and a careful analysis of your financial situation and goals.

Avoid Bankruptcy Mills

Many firms out there are known as bankruptcy mills. These firms or mills crank out bankruptcies day in and day out. They might not charge a lot for your bankruptcy, but they might not do a very thorough job or provide you with the quality service you need. When you need to file for bankruptcy, you need an attorney who is going to give you the time that you need and the attention to your case required to do a good job.

Be Honest and Truthful

One of the difficult things about bankruptcy is that a person’s financial information is so sensitive that it is sometimes all too easy to fudge data so that it paints you in a more favorable light or minimizes the complexity of your financial situation. The best thing that you can do for your case is to be open and honest about your financial situation with your lawyer. Trying to protect assets by hiding them or keeping them from your attorney altogether may constitute bankruptcy fraud and can get you in a lot of trouble. In many cases, trying to hold on to assets by not telling your attorney or the bankruptcy trustee about them will land you in more trouble than it will save you and is illegal.

Hire the Best Lawyers

If you think that your financial situation is not complex or you do not have many assets, then you might think about filing for bankruptcy on your own. However, bankruptcy is a complex area of law that is often misunderstood and is actually difficult for the layperson to navigate on their own. Make sure that you give yourself as much advantage as you can by working with a lawyer who can help you know what to expect and what your next steps should be.

Change Your Habits

After your bankruptcy has been discharged, your next step will be to rebuild your credit. This is an important step because although you have filed for bankruptcy, you might still need a car loan and you might still want to buy a home one day, and you will not be able to do either of these things without a good credit score. In many cases, this will necessitate a change in behavior through either stricter budgeting, decreased spending, or a number of other things. Working with bankruptcy lawyers in Memphis, TN, who are experienced with working with clients in situations similar to yours can help you identify things you can do to change your financial life and avoid another bankruptcy.

Leave a Reply