If you are having trouble financially and don’t see any way out, filing for bankruptcy can be a viable, though unfortunate, option, but if you have landed on this decision, you will just want to make sure that you approach things carefully. The following are different things that you should do prior to actually filing for bankruptcy, and they will help you make the process easier, avoid complications, and deal with things post-filing.
1. Change Bank Accounts
If you have any debt or credit with your current bank, you can often expect them to close your account anyway once they are notified of the bankruptcy. Doing so yourself will save you trouble in the future, and you can also plan for the new bank account ahead of time to make things easier later. It will also prevent other people whom you owe money from withdrawing from your account automatically.
2. Check Any Automated Payments
If you change your bank account, you will need to re-automate any payments that were coming out of your old account by providing the companies with the new bank information. Getting this squared away ensures you won’t have people trying to access your old account, and it’s won’t be something you have to deal with later.
3. Cancel Contracts
Filing for bankruptcy is about cleaning up your money problems, so getting rid of certain contracts can help you obtain relief from the payment. However, it’s important that you do this prior to filing so that you can include those things in your bankruptcy. Cell phone contracts, car loans, leases, and any other contracts you can get away with breaking should be broken prior to filing.
4. Adjust Living Expenses
You will want to make sure that you can live off of your current income before you commit to the bankruptcy. You will want to simplify your situation, eliminate expenses, and ensure that your current income is enough to live on after filing.
5. Hire a Professional to Go Over Your Options
If you are going to file for bankruptcy, you need to commit, so it’s important that you carefully consider all your options before going in. There are other options such as debt consolidation loans and debt management plans, and by working with a professional bankruptcy service, you can learn about the different options and find out what works best for you.
