15 Steps To Take Before Filing Bankruptcy In Oklahoma

If you’re thinking about filing bankruptcy, make sure that you consider the following 15 items before you actually file your case. While I’m sure that your debt problems have you stressed out, you don’t want to jump out of the frying pan and into the fire! The new bankruptcy law of 2005 has made bankruptcy an even more complex process than it was before. So slow down and take some time to ensure that your bankruptcy case goes as smoothly as possible and that you don’t wind up in worse shape than you are now.

1.  Educate yourself about bankruptcy. Read the different articles on this blog and search the internet for other reputable sources of bankruptcy information.

2.  Explore non-bankruptcy alternatives.

3.  Don’t withdraw money from your retirement accounts to pay your debts. Money in 401(k)s, IRAs and other retirement accounts is generally protected from your creditors when you file bankruptcy. So you’d be using money that you could have kept to pay debts that would have been discharged (forgiven or wiped out) by your bankruptcy.

4.  Get your credit report. Here’s how to do it for free.

5.  Make a list of everyone you owe money. Your attorney will need this information to prepare your bankruptcy documents.

6.  Get your paperwork together. Bankruptcy requires a ton of paperwork. Here’s a partial list of what you should be prepared to provide to your attorney:

• 60 days’ worth of pay stubs (you eventually may need to provide more to prove your income for the six months prior to filing).
• The last two months of bank statements.
• Tax returns for the previous two years.

• Statements for all brokerage and retirement accounts, including IRAs, Roth IRAs and 401(k)s.

• Your most recent bills.

• Any collection letters you’ve received or other correspondence about your debts.

• Any current loan contracts (for homes, cars, etc.).

• Any lease contracts (for apartments, cars, etc.).

• Any home appraisals or tax assessments related to your home or other real estate you own.

• Any paperwork related to past bankruptcies.

• Any legal papers you’ve received, including but not limited to lawsuits, judgments, wage garnishments, divorce decrees, court orders and child-support orders.

• Proof of your identity, such as a driver’s license and Social Security card.

7.  Talk with an experienced bankruptcy lawyer. While you can file for bankruptcy without a lawyer, the process is complicated, and I don’t recommend it. You can find a good bankruptcy lawyer at the web site for the National Association of Consumer Bankruptcy Attorneys.

8.  Don’t delay once you’ve made the decision to file bankruptcy. Many people keep throwing good money after bad as they continue to struggle with bills they can’t pay and dig themselves a deeper and deeper financial hole. Sometimes they put off filing until they end up getting sued and having their paycheck garnished. Once you decide bankruptcy is the right choice for you, take action. Get your attorney the paperwork he or she needs and follow through on the other steps required to keep the process moving.

9.  Stop paying bills that will be discharged or forgiven by the bankruptcy. Talk with your bankruptcy lawyer about this first but typically it makes little sense to continue paying debts that will be discharged (forgiven or wiped out) in bankruptcy, such as credit cards, medical bills and payday loans. You’re sort of throwing your money away. If you’re giving up a house or a car, you may want to stop paying those bills too. But again, talk with your attorney first and ask how best to handle your creditors.

10.  Start saving money to pay your lawyer’s fee and other bankruptcy costs. Bankruptcy isn’t cheap. A Chapter 7 bankruptcy typically costs $1,500 or more, including court costs and your attorney’s fee, and a Chapter 13 bankruptcy will cost about twice as much. It will help if you stop paying some bills like we talked about in Step 9.

11.  Stop using your credit cards. As soon as you know you’re going to file bankruptcy, stop using your credit cards. Even better, cut them up. If you use a credit card within 90 days of filing bankruptcy, you’ll still owe the credit card company that money. And using a credit card that  you don’t intend to pay back could be considered bankruptcy fraud.

12.  Think about opening new bank accounts. Do you owe money to a bank or credit union? If so, I recommend that you consider withdrawing any money you have there and move it to a bank or credit union to whom you don’t owe anything. Otherwise, once notified of your bankruptcy, your bank or credit union may try to seize the money you have on deposit.

13.  Don’t buy any big-ticket items without talking to your lawyer. Once you know you’re going to file, you shouldn’t make a financial move without consulting your attorney.

14.  Don’t give away and of your money or other property. Selling or giving away your property before filing bankruptcy can cause you problems in your bankruptcy. The same with paying back money you owe to friends or relatives. Even if you’re trying to do the right thing, these actions could be considered a preferential transfer or fraudulent conveyance, both of which are bad things in bankruptcy.

15.  Complete the required pre-filing credit counseling course. Before you can file bankruptcy, you must complete a one-hour credit counseling course with an agency approved by the U.S. Department of Justice. If you hire me as your bankruptcy lawyer, I’ll help you make arrangements to take the course  The course costs about $50 and can be taken on the internet or by telephone. Make sure you get a certificate showing you’ve completed the course, as it will be required for your bankruptcy filing.

If you’re struggling with debt problems and would like to know more about how bankruptcy may be able to help you, contact me today to schedule a FREE initial consultation. Just fill out the Contact Dan form on the far right side of the page and click the Submit button and I’ll get back with you as quickly as I can. I would count it a privilege to be able to visit with you in a relaxed and confidential environment where I’ll answer all of your questions in plain English and give you the straight scoop on the pros and cons of bankruptcy as related to your specific situation.

Source: MSN Money.