If you’ve tried and tried to settle your debts, but you just keep sinking further, the best thing to do is to bite the bullet and declare bankruptcy. This process will allow you to either wipe out or restructure your debt, allowing you to rebuild your financial life with a fresh start. However, the process can be a difficult one, as aggressive creditors might not be willing to let things off so easily. In order to start the process off on the right foot, here are some tips to consider as you prepare before your first meeting with a bankruptcy attorney.
Watch Out for Set Offs
If you have a car loan or credit card debt with a bank, they are not allowed to demand further payments once you declare bankruptcy. However, if you also have a checking or savings account with them, they can take that amount and apply it to your debt, which is called a set off. Before you declare bankruptcy, think about moving your assets to a different institution, to avoid losing money in a set off.
Tax Season Can be Brutal
Creditors have a reputation for going after debtors during tax season, since they know you’ll be getting a tax return deposited into your account. If you’re considering bankruptcy, try to time your filing for after tax season, which will give you time to secure your return and avoid losing it in a set off.
Contact a Bankruptcy Attorney
Bankruptcy law is a complicated matter, and unscrupulous creditors will use this to their advantage to try to get more money out of you than you’re required to pay. You need to have a helpful advocate to guide you through this process and ensure that your rights are being respected.
At Vivian Law Firm, PLC, we work exclusively with bankruptcy cases, and we have years of experience helping people like you navigate this difficult period in their lives. Contact us today for a free consultation, and let us help you to a fresh start.