The Dos And Don’ts Of Bankruptcy 

The Dos And Don’ts Of Bankruptcy - document on table with currency and wallet

The Dos And Don’ts Of Bankruptcy 

Bankruptcy Lawyer

When you are about to go through something as big as bankruptcy, you can feel extremely overwhelmed by all of the information being thrown at you. While it is important that you work with your lawyer during this time and listen to what they have to say, no one is immune from looking things up on the internet to do their research. Thus, it is essential to know some things you are encouraged to do during the bankruptcy process and others that you should not do to make this process go as smoothly as possible. 

The Dos of Bankruptcy

  1. Do get a lawyer. Of course, many places will tell you to get a lawyer. Will you actually need one, though? Bankruptcy is a very complicated process and it can be difficult to know all of the paperwork to file, which type of bankruptcy you qualify for, and what kind of plan you should make. A lawyer, like a Springfield, IL bankruptcy lawyer from a law firm like Pioletti Pioletti & Nichols can help you during this time. 
  2. Do tell your lawyer as much as you can. You will need to disclose everything you can to your lawyer, including what is in your bank account, what kinds of property you own, who you owe a debt to, and if you have made any large purchases recently. Your lawyer will need to understand how deep in a financial hole you are to know the best way to help get you out. 
  3. Do list all of your debt. When you can, sit down and create a list of every person or company you owe a debt to, no matter how small. This can help your lawyer begin devising a plan that works specifically for your bankruptcy situation. 
  4. Don’t pay people back. This may sound counterintuitive but you do not want to start paying people back, even if it’s a small amount of money. Once you file for bankruptcy, the court can decide who should be paid back and how much you should pay them back.
  5. Don’t “forget” certain income. No matter how small, if you are making any money on the side, it is important that you disclose this to your lawyer. Everything must be included when you are talking with your lawyer about the income you make. If your spouse is not filing for bankruptcy, you still need to list their income on your bankruptcy plan. Although the court cannot require a spouse to help pay off your debts, it can ensure the spouse is paying for certain household items or making simple household contributions. 
  6. Don’t add to your debt. When you are filing for bankruptcy, you do not want to add to your debt. While there may be certain things you need to continue buying, it is crucial that you only buy essential items. Don’t get the latest new phone or go on a fun trip when you cannot afford it. 

Reach out to your trusted lawyer when you are ready to move forward with filing for bankruptcy.