If you are planning to file for bankruptcy in Littleton, Aurora, or Centennial, Colorado, you are most likely struggling to understand all the details involved. Chapter 7 (learn more about this type of bankruptcy) and Chapter 13 bankruptcy (learn more about this type of bankruptcy) both provide relief, but they can be difficult to understand, let alone prepare for. I have been a bankruptcy attorney for over 20 years, so I have a strong grasp on the steps you need to take to prepare for filing for bankruptcy. Here is my guide on how to prepare for bankruptcy.
[pullquote align=”center” textalign=”center” width=”70%”]6 Tips on How to Prepare for Bankruptcy:[/pullquote]
1. Contact a Trusted Bankruptcy Attorney for a Free Consultation Meeting<
Filing for bankruptcy is a complex process. Many people opt to file themselves, only to have their case dismissed because of errors or miscalculations. The U.S. Bankruptcy Court advises people to consult with an experienced bankruptcy lawyer if they are filing, because it is “extremely difficult” to do it without a lawyer (pro se). In the end, an experienced lawyer will save you money, because an attorney has a strong grasp of the bankruptcy code and knows many exemptions.
2. Don’t Transfer or Sell Property or Assets
It is important that you don’t sell any property in order to pay back debts. This goes against common sense, but it can result in the bankruptcy trustee denying discharge because you preferred certain creditors. Also, do not transfer property or conceal any assets. This can result in being charged with bankruptcy fraud.
3. Leave Money in Your Retirement Plans
Almost all money in retirement funds is exempt from the bankruptcy estate – this means it is safe. If you remove it from your retirement fund, it may become part of the bankruptcy estate. It would no longer be protected.
4. Stop the Debt
The ultimate goal of filing for bankruptcy is to get a financial clean slate and get out of debt. Because of this, it is in your best interest to stop incurring debt before you file for bankruptcy. Some debt (such as debt for luxury items) can lead to your bankruptcy filing being denied.
5. Don’t Add Your Name to Accounts
If your name is on the paperwork related to an asset, the bankruptcy court will generally rule that it is yours. Because of this, it is never wise to add your name to a loved one’s account, even if you are trying to help them out. If they file for bankruptcy, you could lose the money in the account. Or, if you file for bankruptcy, your child or parent could lose their money.
6. Get Your Tax Refund
Many people avoid filing their taxes and getting a refund, because they think it will be taken away. Usually, tax refunds are exempt from the bankruptcy estate. This depends on the type of bankruptcy you are filing and other factors. If you have any questions about tax refunds and bankruptcy, consult with a lawyer before making any decisions.
A Bankruptcy Lawyer Can Provide Expertise and Peace of Mind
If you are struggling with how to prepare for bankruptcy in Greenwood Village, Highlands Ranch, or Lone Tree, don’t hesitate to contact an experienced bankruptcy lawyer for guidance. Think about it: You could struggle through the bankruptcy process on your own, stressing about whether you are handling the paperwork correctly. Or, you can contact an attorney who has years of experience and knows the bankruptcy code like the back of his hand. Working with a skilled bankruptcy lawyer will not only give you guidance, it will give you the peace of mind to know your bankruptcy filing is being handled well.
We hope you have enjoyed our guide on how to prepare for bankruptcy in Englewood, Parker, and Castle Rock. Call now to request your free initial consultation meeting with Barry Arrington, a trustworthy and understanding bankruptcy attorney at 303-205-7870 or submit the “Get Help Now” form to begin your journey toward financial freedom.
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