Importance of Pre-Bankruptcy Planning

Bankruptcy doesn’t just happen overnight; it is usually a development that occurs over a long period. Therefore, when considering filing for bankruptcy, it is essential to plan. Avoiding pitfalls that could jeopardize your bankruptcy case or, worse, send you to jail. To ensure that the process runs smoothly, here are a few essential tips to consider when planning to file for bankruptcy.

Provide Honest Accurate Information

The last thing you want to do is give the bankruptcy court anomalies to look into. Too often, bankruptcy petitioners try to “outsmart” their trustees by giving away, transferring, or even trying to hide assets before filing. This mostly ends up as a bad idea as their financial records eventually show what they had done.

Even if it takes a while, such deceptions hardly ever go unnoticed. Getting caught as a result of providing false information only makes your case worse; you could be banned from ever filing for bankruptcy again, have your bankruptcy petition dismissed and face criminal charges punishable by jail time and/or hefty fines.

Consult a Bankruptcy Attorney

As with different aspects of life, it is essential always to consult experts in their respective fields. When considering filing for bankruptcy, it is necessary to speak with a bankruptcy lawyer. These people are paid to suggest the best steps to take. They know different legal ways you can protect assets that are at risk. All in the name of saving money, it could be a wrong move to decide on “doing it all” by yourself – even the bankruptcy courts always urge petitioners to have a strong legal representation present. The risk of doing it alone may not be worth it in the end. Speak with an attorney!

Act Timely

Avoid procrastination. Once you start seeing the signs that it is becoming increasingly difficult to manage substantial debts, immediately start contemplating filing for bankruptcy, do your research, and go with the information provided by trained professionals. Delay, as they say, may be dangerous.

Bankruptcy could be a life-changing experience, but having an early and good pre-bankruptcy planning can produce a positive outcome. Contact a Houston bankruptcy attorney to find out what debts you can eliminate in bankruptcy.