Preparing Your Life for Bankruptcy


October 17, 2016

Bankruptcy can be life-changing, and while most of the changes in your life are meant to benefit you, lack of preparation can make the transition somewhat difficult. Having a professional to oversee and guide you through the bankruptcy process is essential. Here are some professional tips from your bankruptcy attorney in St. Petersburg, Florida for preparing your life for bankruptcy.

Bankruptcy Attorney in St. Petersburg Florida Helps you Prepare for Bankruptcy

Reviewing all of your credit reports is a good step when you are filing for bankruptcy. This gives you an idea of where you currently stand. You can begin to monitor your credit score easily after bankruptcy, if you are aware of your debts beforehand. This way, you can slowly begin to rebuild your credit, and keep careful track of it over time.

Exploring your security deposits is another important step. Some utility companies may have taken a deposit when you signed up for their service. Although you may not have to pay your balance when you declare bankruptcy, the utility company is entitled to use your security deposit to cover some or all of your debt. To continue service, they may require you to repay your deposit, as if you were a new customer. Therefore, it is important that you find out before declaring bankruptcy which companies required a deposit, and how much you will need to replenish. This way you can prepare to make those payments immediately.

You should also be aware of any auto payments that come from your account. These automatic payments are based upon a separate agreement, and will not stop simply because you have declared bankruptcy. In order to properly manage your funds, cease the automatic payments until you are back on track.

Stop borrowing money and stop paying certain loans. You should stop borrowing immediately when you’ve made the decision to file for bankruptcy. If you use your credit cards after knowingly filing for bankruptcy, you could face serious charges. This is basically signing an agreement that you never plan to uphold. However, when considering your current loans, you should stop making payments immediately. Allow the process and your lawyer to handle the agreement, and wait for instruction from your attorney. In order to be sure which bills to stop paying, run everything by your bankruptcy attorney first.

Create a detailed budget. You need to know how much you can pay out each month, and what you can afford. A detailed budget will help you start to recover and learn the ins and outs of finance, so that you don’t end up in the position of bankruptcy again. Consider a professional accountant to help you forecast your budget.

Bankruptcy doesn’t have to be an ending. With proper planning and the right people behind you, like our bankruptcy attorney in St. Petersburg, Florida, it can be a brand new beginning. Prepare for bankruptcy like the major life change that it is, and you will see positive results.

Source: Bankruptcy

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