Preparing for Your Bankruptcy

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Explore:  Consumer Bankruptcy

While there are some rare situations when a person or business may need to file bankruptcy in a hurry — such as to avoid foreclosure — it is never something that should be done without thorough preparation. Bankruptcy in all its forms can be a powerful process if executed correctly. However, petitioners who fail to be careful may find themselves missing the full benefits of the process or, worse, having their petitions dismissed without relief, or their discharges denied. 

There are several steps you and your attorney should take before filing a petition for bankruptcy, including some new requirements imposed by the Bankruptcy Abuse Prevention and Consumer Protection Act

  • Bankruptcy petitioners should closely audit their real and personal property and their sources of income. 

  • Bankruptcy petitioners must compile a complete list of their current creditors, the amounts owed and the nature of the debts. 

  • Under the act, all individuals must go through U.S. Trustee-approved consumer credit counseling before filing a bankruptcy petition. 

  • Individuals facing bankruptcy may consider restructuring their affairs to minimize their nondischargeable debt and to take optimal advantage of bankruptcy property exemptions. 

What you do before filing a petition for bankruptcy can have a huge effect on how that petition proceeds and how satisfied you are with the result.   

It is possible in some situations to complete a non-bankruptcy debt consolidation program, or a settlement with your creditors.  However, you should execute extreme caution in who you choose to help you.  

Topics:  Consumer Bankruptcy

Published In: Bankruptcy Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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