Steps to Take When Preparing to File for Bankruptcy

terri-october-week-2-img-debt-1376061_1280Making the decision to file for bankruptcy is one of the hardest things that many people will have to do in their lives, but doing so can open the door to new opportunity and relieve you of stress that has become nearly intolerable. Once you’ve reached the conclusion that it is the best thing for you, there are several steps that you can take to make the process easier for yourself. The very first step that you should take is to contact an experienced bankruptcy attorney who can answer any questions you may have and make sure that all of your documents are in order and that your filing is done properly. At Erik B. Jensen Attorneys at Law, we understand the challenges represented by filing for bankruptcy, and we are here to make the process go as smoothly as possible.

One of the first things that you should do before filing for bankruptcy is to take a close look at where your money is and determine whether you need to move it into a different account. This is a particular concern if you have a checking or savings account with a bank where you also have a credit card account or loan that you owe money to. If this is the case and you plan on using the cash that is in your checking or savings account in the future, then you need to move that money to another bank. This is because the bank has the legal right to do what is known as a bank set off, and to transfer the funds from your cash accounts into the credit card account to satisfy the debt that you owe.

A similar set off situation may exist with your utility company. If they are holding a security deposit on your account and you declare bankruptcy, the utility company can use your security deposit to pay off back debts owed to them, and then to demand that you provide another security deposit in order to continue using their services. The best way to prevent this from happening is to make sure that you are up-to-date on your utility bills before declaring bankruptcy. If that is not possible, then at the very least have the cash on hand to provide another security deposit and keep the lights on.

Finally, take the time to look over your credit card bills and bank statements to see whether you have any payments that are being automatically deducted, and if you do then arrange to stop that from happening. This will prevent you from adding on to your debt and will make sure that you have more cash on hand.

Details like these are just a few of the benefits that an experienced bankruptcy attorney can provide when you are preparing to file for bankruptcy. Call the Law Offices of Erik B. Jensen today to set up an appointment to learn more about how we can help.