What Should You Do Before Filing for Bankruptcy?

: Reese Baker & Associates

  Filed under: Filing bankruptcy

before filing, bankruptcy, bankrupt, bankruptcy attorney Houston, Texas, lawyer,Many individuals struggle for a great deal of time with their financial difficulties before deciding to file for bankruptcy. This is based on the hopes that their situation is temporary and they will be able to become financially stable once again on their own. Most often it leads to the point where they are at risk of losing many of their important assets and it finally comes down to there is no option but bankruptcy.

The first step to take as soon as you are running into financial difficulty of course is to stop using your credit cards. This can often be difficult if there is no money coming in and the credit cards are the only source of money that you have to rely on. Rather than continue with the credit card use you are far better off to start your bankruptcy procedure. The bankruptcy courts will scrutinize the action that is taken place on your credit cards prior to your filing.

What you want to do is get yourself a professional that can assist you through the entirety of the bankruptcy procedure and this is an experienced bankruptcy attorney.

It is not unusual for individuals to borrow money from friends and family when they are in the financial situation. It is highly important that prior to bankruptcy if you are doing this that the money you are receiving is a gift and not a loan.

The other great benefit of being able to file for bankruptcy when you are in this situation is that it can postpone a potential foreclosure or other creditor actions that may be pending. It is much better to file for the bankruptcy before these actions start rather than after.