Learn These Tips for Surviving Bankruptcy
In a recent article to Entrepreneur magazine, Omar Spahi shared the lessons he learned when he was forced to file for bankruptcy protection. In this issue, we’ll share excerpts from his article.
Background on the Author
Spahi was just 19 when his grandmother passed away, leaving him to manage more than 30 rental properties in California. However, the economy took a turn for the worst and renters for his properties were hard to find. “I tried to contact the mortgage holders, but they would not talk to me because none of the loans were in my name,” he wrote. “When I finally got through to them, they would not agree to modify the loans. With my back up against the wall, I decided bankruptcy was the only option to protect my assets.”
Tips for Surviving Bankruptcy
With that in mind, here are excerpts from Spahi’s article about surviving the bankruptcy process.
- Hire the right lawyer. While it’s easy to interview lawyers, it’s crucial that you ask the right questions. Look at your situation, and ask the prospective lawyers questions based around it, like “Have you successfully completed a bankruptcy plan like this before?”
- Create a plan for yourself before you file. Figure out a plan that will work for you. Make sure it includes things like if you sell an asset at a certain time, you’ll be able to pay down a certain amount of your debt and have a certain amount left over.
While you’ll most likely have to make a few changes in the plan along the way, the key is to at least have the right blueprint in place and ready to put into action.
- Do not play games with bankruptcy courts. Always be honest with the courts because they are there to help you. Hiding assets or certain purchases could hurt you in the wrong time.
- Plan for the down times. Everything has a lifespan, so don’t forget to save money. Even if it’s a little, it’s always great to have reserves when bad things happen.
Thinking of Filing for Bankruptcy? Call The Oswalt Law Group of Arizona
The decision to file for bankruptcy is a serious one, and definitely one you should talk over with a bankruptcy attorney. For a free consultation, call us here at The Oswalt Law Group; our number is 602-225-2222.