Bankruptcy is like a pressing a financial restart button while you are overwhelmed with debts. Filing for a bankruptcy is a fresh financial start that helps fillers to pay their liabilities. Before you decide that you are ready to fill bankruptcy in the court, remember you have to fix so many things which are important. Before you commit yourself to bankruptcy consider the following important tips from Brian Linnekens the bankruptcy guide. Following these tips will make sure that you are prepared for filing bankruptcy.
Get an idea about bankruptcy cost and fee
The first thing a bankrupt should do once he decides (or is still deciding whether to file or not) is getting an idea about bankruptcy fees and overall costs. No doubt, it costs to file bankruptcy; you need to submit bankruptcy forms and fees in the court on the day of your bankruptcy. You will also have to pay the bankruptcy lawyer who will handle your bankruptcy case in the court. So it is very important to find out in advance that what would be your overall bankruptcy cost before filing. A bankruptcy fee depends upon where you live in the USA. Instead of going alone find a lawyer that would assist you with the right bankruptcy cost. Well, it is possible to file for bankruptcy without a lawyer, but it is difficult, risky and an overwhelming task. As you are a bankrupt it might be difficult for you to arrange money for bankruptcy and lawyer’s fee but you could ask your family members and friends to help.
Change Your Bank Account Before filing a bankruptcy
If you have debts with your bank then your account is likely to be closed down when you go bankrupt. Brain Linnekens recommends bankrupts to open a new bank account before committing themselves bankrupt in the court. Banks with a good reputation generally have a clause in their terms and conditions that they will not open your a new account in their banks if you go bankrupt. So it is very important to open a new bank account two or three months prior to filing for bankruptcy.
Complete your forms
Before filing for a bankruptcy in the court make sure that you have completed two bankruptcy forms. One form is the Statement of Affairs (6.28) and the other is the Debtor’s Bankruptcy Petition (6.27). And if you are qualified for the court fee being waived then you will also need to complete the application for a fee remission form (EX160). Always carry 4 copies of the Statement of Affairs form and Debtor’s Bankruptcy Petition form with you while going to court for filing. Your bankruptcy cannot be granted without it. Make a file and keep more than four photocopies of each bankruptcy paper with you.
Book your appointment and attend your hearing
Not all courts deal with bankruptcy so you need to find out the details of the courts of your locality that deal with bankruptcy. Call your court to find out if the court you are going to handles bankruptcy related cases. Fix an appointment with a bankruptcy court which is closest to you. You should be responsible enough to be on time for your hearing.