Pre-Bankruptcy
If you are contemplating filing for bankruptcy, there are a few things you can do to reduce the likelihood of making errors that could compromise the outcome of your case. First, be prepared to have your financial affairs meticulously examined. Having supporting documentation for your debts, income, and financial transactions can save you time and trouble in the future. The court may request copies of your pay receipts, bank statements, and debt account statements. This process can be streamlined by organizing this information prior to petition submission.
The second requirement of bankruptcy laws is that those who file must undergo a credit counseling course. This course is intended to teach you about your obligations, how to manage your finances, and how to avoid falling into debt in the future. Failure to complete this course and submit the completion certificate to the court may result in a delay or dismissal of your case. In addition, the court will only accept courses from approved credit counseling agencies, so be careful to locate an approved provider through the U.S. Department of Trustee's website.
Additionally, you should recognize that your actions may affect the outcome of your case. Your income is the primary factor used to determine bankruptcy eligibility. Significant changes in your income, such as a pay raise or a second job, could disqualify you from eligibility for Chapter 7 or alter the amount you must pay in Chapter 13. In addition, the courts may view as dubious uncharacteristic adjustments to your debt accounts. Before filing for bankruptcy, rapidly paying off debts or accruing additional debts may result in case dismissal. In addition, selling or transferring assets prior to filing could be considered fraudulent and jeopardize your chances of receiving a discharge.
Post-Bankruptcy
After a bankruptcy case has been effectively concluded, there is still work to be done. You are responsible for ensuring that you have a copy of all documentation related to your case. Ensure you retain this information in the event that a creditor makes a future collection attempt. Additionally, not all creditors immediately update account information with credit bureaus. Monitor your credit report and request that creditors who have not reported the most recent information update your accounts. The most important step following bankruptcy is to initiate the process of reestablishing credit. Find one or two modest credit lines to begin maintaining manageable balances. Continue making on-time payments for six to twelve months, and your credit will reflect your diligence and positive borrowing potential.
" - https://www.affordablecebu.com/
