When you first start considering whether or not to file for bankruptcy, it can be overwhelming. You should not go into the process completely alone, but instead, you should get help from an experienced bankruptcy attorney. Bankruptcy attorneys have the experience and knowledge to guide you through the bankruptcy process. Plus, they can help you start fresh on the other side. Figuring out how to pay off debt when there’s simply not enough money to do so is extremely frustrating. And, there may come a point where the debts are too large for you to ignore the prospect of wiping them all out in bankruptcy. Below are a few tips and tricks from a seasoned bankruptcy attorney to keep in mind when looking to resolve your debt problems once and for all with a bankruptcy filing.
The first and most important question you need to ask when considering whether or not to file for bankruptcy is “can I afford not to file bankruptcy?” To answer that question, you must add up all your income (from all sources) from the preceding 6 months. Now, divide that number by 6 and you have your average monthly income. Next, make a list of all your regular monthly expenses.
Make sure to include rent or mortgage payments, car payments, gas, insurance payments, groceries, restaurants, medical or health care expenses, entertainment, etc. Finally, subtract the total monthly expenses from the average monthly income and there you have it…the magic number; your total monthly disposable income! If that number is high enough to pay all of your monthly credit card bills, personal loans, etc., then you may not need to file bankruptcy. However, if the monthly disposable income is equal to or less than those bills that can be discharged in bankruptcy, you should absolutely speak with an experienced bankruptcy attorney. That way, you'll get an understanding of what you have to lose by going with the bankruptcy option. In all likelihood, you’ll have nothing to lose but debt and stress.
Before you file for bankruptcy, you will need to have a clear picture of what your finances and debts currently look like. You should check your report from all three credit bureaus. That is, of course, to ensure there are no errors and nothing you are overlooking. If there are any errors, you will need to address them before filing. You can also discuss what to do with these errors with your bankruptcy attorney.
It may be tempting to transfer unexempt assets; such as large amounts of money in bank accounts, cars with too much equity, investment real estate, etc., so that they are not included in the bankruptcy (or otherwise attachable by creditors). However, laws addressing preferential or fraudulent transfers are well-established. Moreover, they prevent debtors in bankruptcy from doing so without a steep cost. If the bankruptcy Trustee uncovers preferential or fraudulent transfers, those transfers can be undone. And, the recipient and the debtor in bankruptcy can be facing some serious problems. Instead, speak with an experienced bankruptcy attorney to figure out whether you have unexempt assets. And, if so, the best way to address those unexempt assets in bankruptcy with a minimal amount of stress or expense.
There are many bankruptcy attorneys out there and choosing the right one is essential to your new beginning. When you have questions or concerns about your financial situation, it is in your best interest to speak with a bankruptcy attorney immediately. The Law Offices of Emil Fleysher, P.A. is here to help you every step of the way. Contact us online or call us at 888-886-0020 for a free consultation today.
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