If you’re planning on filing for bankruptcy, an experienced attorney can help you eliminate more debt and protect more property. And with a bankruptcy lawyer working on your behalf, your case will proceed smoothly.
But, to get the fresh financial start you deserve, you may need to take care of a few matters first. Here’s what to do before you file for Chapter 7 bankruptcy.
Stop All Automated Payments
Creditors are supposed to stop taking payments from you as soon as they learn of your bankruptcy filing. However, if you have authorized automatic deductions from your paycheck, bank account or credit card, a payment or two could slip through. To make sure this doesn’t happen to you, stop all automated charges before you file for Chapter 7 bankruptcy.
Stop Using Your Credit Cards
Running up your credit cards shortly before filing may lead to allegations of fraud. If you purchase items on credit when you have no intention of paying the money back, the creditor could file an objection. Or, the court could dismiss your bankruptcy case. You might also face a criminal investigation, which could result in fines and incarceration. So, if you know you’re going to file for Chapter 7 bankruptcy, stop using your credit cards.
Stop Banking with Creditors
Do you have a checking or savings account and an auto loan with the same bank? You may want to move your money to an account with a different bank before filing for bankruptcy. If you leave the funds where they are, your bank could seize them to offset the debt you owe on your auto loan. You’ll need to report all bank accounts on your Chapter 7 bankruptcy paperwork, but moving your money removes the possibility of it being seized.
Pay Your Past-Due Rent
Before filing for bankruptcy, you should try to pay your landlord any money you still owe on rent. While you may be able to discharge the past-due amount, your landlord will not be obligated to let you remain in the home. To secure your housing situation and avoid a possible eviction, it’s best to be current on rent when you file for Chapter 7 bankruptcy.
Are you getting ready to file for Chapter 7 bankruptcy? If you live in northern Utah, call on the Law Office of Davis & Jones, P.C., for expert legal advice.
Our highly experienced bankruptcy lawyers have been helping people achieve debt relief since 1995, and we can put you on the path to a brighter financial future. And when you visit the Law Office of Davis & Jones, you will always meet with an attorney – not a legal assistant.
For a free consultation with our bankruptcy lawyers, contact our Salt Lake City, Utah, office today.