Three Things You Should Do Before Filing Bankruptcy

While filing bankruptcy can help you control your debt and stop creditor harassment, it is not the first step you should take in order to handle your finances. There are three things that Oswalt Law Group, a leading Arizona bankruptcy law firm, recommends before you file for bankruptcy. Taking these steps may help you avoid bankruptcy but even if you must file, taking these steps will definitely make the process easier. Here are three things you should always do before filing bankruptcy: 1)      Make a complete list of all your debts and assets. You will have to do this anyway, so you might as well do it now. Spend some time quietly with your records, even if it seems daunting. What you may find is that making a list of all your assets and your debts helps you see the scope of the problem. It may be that things are not as bad as you thought; of course, it could also be the case that you owe more than you realized. Either way, taking the first step of quantifying the problem is necessary for you to make an informed decision about bankruptcy. 2)      Talk to your creditors about possible loan modifications or payment options. The threat of bankruptcy is a very real one to creditors, so they are often willing to go to great lengths to help you avoid it. This may include loan modifications or payment options that can help you catch up on overdue bills. Creditors may, at your request, lower interest rates or give you more time to pay if you are honest about your financial difficulties. 3)      Stop transferring property or spending large amounts of money. Bankruptcy law prohibits you from making any large transfers of property or cash in the months prior to filing for bankruptcy. At best, you will delay your bankruptcy case by trying to make property transfers. At worst, the court might see your move as an illegal attempt to avoid the consequences of bankruptcy filing and hide assets from creditors. Oswalt Law Group in Phoenix is ready to help you choose the right type of bankruptcy for your needs so that you can enjoy the benefits of protection from creditors and their harrassment. Call Oswalt Law Group today for more information on how you can protect yourself and your assets through bankruptcy.