When you face or about to face bankruptcy, you should learn the things you need to do and the things you should not do. Many people suffer a lot from bankruptcy not because of bankruptcy itself, but because they don’t know what to do and what to avoid. They also believe in myths and misconceptions which only worsened the fear and stresses when these are all unnecessary.
Take the time to read this article, and learn the do’s and don’ts during a bankruptcy case. This will help you how to avoid further problems and how to quickly get out of your bankruptcy!
Do’s During Bankruptcy
- Keep track of financial records – Keep track of your financial records so you can know if you are capable of paying your debts through a repayment or reorganizational plan, or if you have other options in handling your debts without giving up many or all of your assets. Your financial records may look gloomy considering you’re under a bankruptcy case, but an overall look at your financial records could change everything – you may have other options you didn’t see at first!
- Remain insured – You may question the importance of insurance during this financial crisis, but insurance is all the more important when all financial burdens are burdened on your shoulders. You still don’t know what might happen in the future. Accidents and other mishaps are costly in themselves, and being insured would remove a portion of those expenses, lifting you off from some burden!
- Tell the truth – Not telling the truth could lead you to other legal cases, which only worsens your case! Not telling the truth could also slow or even hamper your recovery. Inasmuch as this is a very hard time, you should be honest at all times – with others and even with yourself. As they say, you have to swallow the bitter pill of truth if you want to be cured.
Don’ts During Bankruptcy
- Acquire more debt – Do not acquire more debt when your under a bankruptcy case because it will only sink you further your debt hole. Clearly, your first goal during bankruptcy is one and only one – to lift yourself of from debts! How can you do that if you’ll take more debts? The only exception here is taking what’s called “debt consolidation”. This means you take new debts to pay the old ones. This sounds reasonable, but should be done as a last resort. Don’t take it too early if you have other means to pay your old debts.
- Fail to mention assets – This is part of telling the truth: mention your assets truthfully. If you don’t, you could face other legal charges which may not only sink you in your financial burden, you could even face jail time! Being truthful about your assets can actually help more than it hurts: you’ll have a variety of options at your disposal than if you choose to hide them. You’ll gain access to other means of paying your debts if you have resources. So, don’t fail (or lie) about your assets. Be truthful all the time!
- Hesitate to ask for help – Do not hide your problems from your family, spouse and other people who are close to you. And of course, don’t forget the professionals – the lawyers, financial consultants, etc. In one way or another, they have a way to help you – whether directly or indirectly. In some cases, you can even find help from your creditors. If you wonder why would they help you, that’s because they want you to pay them! So try to talk to your creditors, and you may see that you actually have other options around!
If you will carefully observe, I’ve talked about options and means a lot. That’s because you do need as many options and means as possible.
If debt reduction is your first goal during a bankruptcy case, your second goal should be to seek as many options and means as possible to reduce your debts – all without resorting to losing your properties. You may still lose some, but at least, not all.
If you are having any bankruptcy problems, never hesitate to seek legal counsel from an expert bankruptcy lawyer. An expert lawyer can help you with your case!