Do you ever feel like your debt is taking your life away?
Are you in danger of losing your house, your cars, and all your hard earned assets?
Life wasn’t designed to be lived this way! If you’re looking at bankruptcy as an option to provide you with debt relief, here are 5 steps you should take before filing for bankruptcy.
1. Assess your finances
The first thing you need to do is to figure out where you are at. You have to know where you’re starting, to have a clear path on where you want to go. Calculate your expenses in as much detail as possible. You need to be fully aware of all your expenses, all your income, and all your outstanding debts. Knowledge is power, and knowing in detail where you stand is going to make the process of finding appropriate solutions a lot quicker.
2.Get a free credit report
Before filing for bankruptcy, you should obtain a list of all the creditors you are on record as owing to. A good place to start is to request a copy of your credit report from the top 3 reporting agencies (see link below).
Unfortunately, many people also make the mistake of believing that because debt-collectors have ceased calling them regarding a debt it is no longer in their listing or if your bank has billed your debt it’s no longer valid.
This cannot be further from the truth. You can still be liable for debts, even if they do not show up on your credit report.
Get a FREE copy of your annual credit report at this website:
3.Gather relevant documents
There are different documents that are important to review to determine whether bankruptcy is the right option. These include copies of recent tax returns, bank statements, mortgage statements, auto statements, etc.
Keep them organized in a file so that it’s easy to go over with a bankruptcy attorney or credit counselor.
4.Obtain a credit counseling certificate
One of the pre-filing requirements for a bankruptcy is to complete a credit counseling course. You can obtain this from a government-certified counselling agency.
The counseling must take place in the six months prior to filing bankruptcy. Do not wait until the 11th hour to get this complete.