Recovering from Financial Ruin

How To Prepare For A Bankruptcy

3 September 2015 by Veeti Lepisto

Facing bankruptcy is stressful. However, if you prepare for the process, you can make it easier for you and your family.

Documents Needed When Preparing For Bankruptcy

Your lawyer can provide the most thorough requirements for a successful bankruptcy filing. However, it helps to have your documents ready ahead of time when you consult your lawyer about assets and debts. It also makes less work for your attorneys when you have papers gathered, which will lower your legal consultation fees.

Here's a list of some commonly requested documentation required for declaring bankruptcy:

• Bank statements from the past 12 months (or even older if you have them)
• Bills or invoices for purchases made in the past year
• Current outstanding copies of recent bills
• As many receipts as you can possibly find
• Previous attorney records and papers from prior judgments or filings
• Cancelled checks, creditor correspondence records,  or signed promissory notes
• Vehicle titles, leases or mortgages
• Written repayment agreements made between you and private parties
• Lawsuit records and other proof of owing money
• Tax returns from the past three years
• Any other documents you have that would determine your case
• All other papers requested by your lawyer

If you're not sure you have all the information you need, ask your attorney. He or she will instruct you on whether or not you need to include certain assets, income streams or purchases.

Check Out Your Credit Report Before Bankruptcy

Before making the decision to declare that you are unable to pay your bills, you'll want to review all your credit reports. This will prepare you in case of a potential lawsuit. In addition, it is highly recommended that you look at public records to find out if you have any judgments posted in your credit files. This will alert you of any possible wage garnishments or bank levies. 

Talking to Your Spouse and Children

There isn't going to be any easy way to break the news to your loved ones concerning your financial situation. Perhaps you need to plan a family meeting where you can announce your intentions to file bankruptcy. In doing so, you also will want to prepare for the questions your spouse or children might ask. Remain as positive as possible, and don't forget to tell them how this will help give your family a fresh start.

With careful practical planning on your part and emotional support from your family, you'll get through this financial challenge. Talk to an attorney, like Richard S. Ross - Bankruptcy Attorney, to learn more.

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