Have you spoken to an attorney?
Bankruptcy is only one form of debt relief and it is important to evaluate all of your options before choosing one. A bankruptcy lawyer in Sacramento can discuss all of your options and outline the risks and benefits of each against your financial situation. Seeking legal counsel is essential to making an educated decision for your future.
Have you kept your financial profile steady in the last 6 months?
Your outcome in bankruptcy can be influenced by your actions in the months leading up to the filing. If you have taken on excessive debt, transferred or sold assets your case could be negatively impacted. The court isn’t likely to allow for excessive purchases to be eliminated if they were acquired in the last few months. Moving, gifting, transferring ownership or selling of assets greatly complicates a bankruptcy case and could even be viewed as suspicious by the court.
Have you filed for bankruptcy in the past?
If you have received a debt Discharge in the past you may not be eligible to file another bankruptcy right now. The waiting period for filing a Chapter 7 bankruptcy is 8 years after a prior Chapter 7 discharge, and 6 years after a prior Chapter 13 discharge. The waiting period for filing a Chapter 13 bankruptcy is 4 years after a prior Chapter 7 discharge, and 2 years after a prior Chapter 13 discharge.
Have you gathered your documents?
Filing for bankruptcy can be a tedious process in the beginning. You will need to make sure you have either met the means test requirement for filing a Chapter 7 or file for Chapter 13 instead. Determining your eligibility will require an attorney to evaluate your income and family size, meaning they will need your paycheck stubs or income information. Completing the petition is also a document-heavy task. So be sure to organize all your income paperwork, tax information for the past two years, bank statements, statements from any fund or benefit accounts.
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