What You Should Do When Preparing to File for Bankruptcy

If you’re reading this page, then you have decided that you want to learn more information about bankruptcy. Our very first piece of advice is that you should always consult a Montgomery bankruptcy attorney or Selma bankruptcy attorney. It is always possible to represent yourself in any legal action, including bankruptcy, but you know the old saying, “a person who represents himself has a fool for a client.” While we are not saying that it can’t be done, we are saying that there is a certain risk that may befall the unsuspecting debtor who tries to represent himself. Most of these cases end in failure. To guarantee that you have the greatest chance of receiving a discharge in a Chapter 7 bankruptcy or Chapter 13 debt consolidation plan.

It is in your best interest to hire a skilled and knowledgeable bankruptcy attorney. There are so many obstacles that may arise in a bankruptcy case that a skilled attorney is the one who can navigate these waters for you. Furthermore, a skilled bankruptcy attorney can tell you the steps that you need to take in order to prepare the filing of your case and representing you through the complicated bankruptcy process.

The objective in a Chapter 7 and Chapter 13 is to obtain a discharge of your debts. In a Chapter 7 this means that you will no longer have any liability for either all or almost all of the debts that you’ve placed into bankruptcy. In a Chapter 13 debt consolidation you will have to repay a greater percentage of your debt over a period of three to five years, but you will most likely discharge almost all of your unsecured debt and part of your secured debt. Each case is different, and each debtor will decide what secured property, if any, they wish to keep. However, the most important step that you need to take before filing for bankruptcy is it getting your finances in order.

To prepare for the bankruptcy, our Montgomery bankruptcy attorneys and Selma bankruptcy attorneys advise all potential clients to stop borrowing money, stop using credit cards, and stop taking out credit. Borrowing money close to the filing of the bankruptcy may be construed as fraud, and you may be ordered by the judge to repay the debt that you incurred. Furthermore, you should not repay any individual who loaned you more than $600 prior to the three months to filing bankruptcy. Also don’t transfer property, assets, or money. The trustee can set aside these transfers and bring this money, property, and assets back into the bankruptcy estate and it can be seized. Basically, the goal is to maintain the status quo and file the bankruptcy with the debts that you have on hand right now.

After we file your bankruptcy petition the automatic stay will going to affect. The automatic stay is an injunction which prevents your creditors from trying to collect debts from you. This also prevents creditors from repossessing cars and foreclosing on homes that you may own. The automatic stay is one of the most important tools that we have available to us in your bankruptcy proceeding.

Also prior to meeting with any client we request that they bring in 6 months’ worth of pay stubs if they are employed and their last three years tax returns if they were required to file taxes. This is so that we can better analyze our clients debts and income.

At The Sellers Law Firm, our experienced Montgomery bankruptcy attorneys and Selma bankruptcy attorneys are here to help and will answer any questions that you have regarding a Chapter 7 bankruptcy or Chapter 13 debt consolidation plan. All consultations are always free, and our phone lines are answered 24 hours a day. We can usually meet with you within 24 hours of contacting us! We have four convenient locations in Montgomery, Selma, Greenville, and Troy. You may email us at bsellers@sellerslawfirm.com. You may contact us by calling or texting 334-LAWYERS (334-529-9937) to set an appointment. You may also use the Contact Form on our website! Remember that doing nothing changes nothing so call today!