Bankruptcy is never anyone’s first choice. But, if you live in Rhode Island and are drowning in debt, there are some simple steps you should take TODAY to prepare for the possibility of a Chapter 7 bankruptcy. Here are just a few ways to make life less stressful for both of us.
Stop the insanity. Do not use your credit cards anymore for anything . . . . including everyday living expenses.
- If we work together, I must know about every purchase made in the past 90 days.
- You should make no less than 3 payments after a major purchase, cash advance or balance transfer. Depending on your circumstances, I may advise making a few more payments, or waiting a few months before filing your case.
- Keep away from your 401k plans and other retirement accounts. A recent distribution may jeopardize your case.
- Don’t get clever with your property. You cannot take your name off of deeds to real estate, or other valuable property without causing major problems.
- Obtain your income tax records for the past two years.
- Gather copies of all pay-stubs for the prior 6 month period. Continue to collect them going forward.
- Be private. Do not divulge your plans to any debt collector. They may decide to go after your bank accounts now if they think you are filing bankruptcy next month.
- Keep paying on your house and car if you intend to keep this property. You should try to get current on these obligations before filing your case.
- For homeowners, perform a title examination. I need to know if there are judgment liens against any real estate.
- Don’t play favorites. You should not pay more than $ 200 back to friends and family members in the past year.
- Be prepared to disclose all property that you may have any interest in. Is your name on a parent’s bank account, or real estate? Are you owed money by anyone for any reason?
- Request your free credit reports at http://www.annualcreditreport.com to identify all creditors.
- Start saving money for your Chapter 7 bankruptcy case. Although I provide a free telephone consultation, I cannot file your case until all fees are paid in full.
- Call me TODAY with all of your questions. I will give you my honest assessment, then you will understand what needs to be done to get out of debt once and for all.
