Bankruptcy Help

The need to file for bankruptcy help generally sneaks up on people so the average debtor hardly ever “plans” for it in advance. Generally this is not the practice of bankruptcy lawyers and financial experts. They would plan far in advance, taking various steps and measures to reduce any assets which could possibly be seized by creditors in bankruptcy help. This way the debtor would be able to get the maximum benefit out of bankruptcy.

Any planning should be done before you actually start drawing up the petition papers or to file them….preferably…one year before. Here are some helpful pointers:

1) Determine if you have any assets that are worth saving (sell a non-exempt asset and buy something that is exempt)

2) Reduce the equity in your home to protect it (calculate the amount you need to pay off including other liens, subtract the homestead exemption to find your equity amount.

3) Homestead your home to protect it

4) Schedule your inheritance or gift receipts (if it is within your power not to accept it until 12months after your bankruptcy help -do so.

5) Pick your best time to file for bankruptcy help (while you are without meaningful work, down to your pocket change, receiving unemployment, welfare etc.)

Think smart!!! If you have anything you can put in someone else’s name ( a year before you file) do it. If you have savings stashed here, there, and everywhere…put it in someone else’s name. Better yet, take part of that money and put a lump sum down on your house to bring the amount of mortgage down. Or, if you just bought a brand new car, pay a lump sum on it to get the amount owed down under $12,000 so they can’t take it.

Once you file papers for bankruptcy help, your bankruptcy lawyer calls each company you owe and tries to get them to accept a lesser amount plus smaller payments if you have enough income to pay it. If you don’t they will be advised you have filed for bankruptcy and they can’t do anything until the suit goes to court…including calling you to harass you.

Send for your credit report before you file to see if there is anyone you owe from years ago that you have forgotten to list on your bankruptcy help form.

If you have the money, pay in advance for your child to enter college OR if you have money coming to you through an inheritance etc. make arrangements for that money to be given to your child in a trust for their education. Remember…think smart.

If you file and win a bankruptcy help suit, you have a long climb to get your financial picture up to where you were. You are not going to have the credit you used to have to buy at will. You will have to depend on cash for some time. If possible keep one credit card, even if you have to make a large payment to get it under control again. That way you are, at least, protected in case of an emergency…just don’t be foolish and use it unless it is an emergency.

bankruptcy help