The decision to file for bankruptcy is not one that most people take lightly. However, it may be the right decision if you are in certain dire financial situations such as your home is about to be foreclosed on, your car is about to be repossessed, your wages are being garnished, or you are being sued. Bankruptcy can lift these burdens from your shoulders and give you a fresh start, but there are some things you need to do before you file to ensure that you get the best results.
The first thing you need to do when considering bankruptcy is to contact a reputable Utah bankruptcy attorney. They can help determine if you are a good candidate for bankruptcy and which type you will be filing for (Chapter 7 or Chapter 13). They can consult with you on what the process will be like and which of your assets will be affected. They can work with you to figure out what your finances will look like once your debts are discharged and what your game plan for the future should be.
In order to determine whether you should file for a Chapter 13 or Chapter 7 bankruptcy, you will need to keep careful track of your monthly expenses in the weeks prior to filing. Tracking your monthly expenses will also give you an idea of what your budget will look like after your bankruptcy is complete.
You will be required to complete a credit counseling course before you can file for bankruptcy. This can be done online from your home, over the phone, or in a classroom setting. It’s important to get the class completed as soon as possible so your bankruptcy filing won’t be delayed. You will also be required to take a debtor education course after you file for bankruptcy, but before your case is discharged.
There are a few things that you should definitely not do when preparing to file for bankruptcy. Having a spending spree with your credit cards, attempting to hide or transfer assets to family members, or intentionally damaging property that you expect to have to turn over to creditors may be viewed as fraudulent and can carry criminal charges. This could also cause problems for the friends or family members who you transferred property to and they could face the same charges.
Your bankruptcy proceedings will yield the most success if you speak with an attorney with substantial experience and follow their advice to manage your debt and finances. Choosing an attorney is not like purchasing items at a store, where you comparison shop to find the lowest price for an identical item then make your purchase. Inexpensive attorneys can cost you a lot in the long run and expensive attorneys are sometimes simply overpriced. Make sure the attorney you choose is knowledgeable and experienced with the bankruptcy laws and procedures in the state of Utah.