08 Nov 4 Things To Do Before You File For Bankruptcy In Minnesota
When filing for bankruptcy in Minnesota it’s important to have a plan. When you have a plan you know exactly what you’re going to do before, during, and after the process. Knowing what to do before filing for bankruptcy is important to ensuring a smooth process and a less stressful outcome.
Here are 4 things you’ll want to focus on before taking the leap into full bankruptcy mode.
Figure Out What You’ve Got
Knowing how much debt you have will help you when comes time to file. Before you even contact the court, or your attorney, make sure you locate the essentials. This includes the information for all of your financial accounts. Knowing how much you own on each account, the interest rates, and payment history will help you when presenting your case.
Locating all other forms of debt will be helpful to your case as well. Make sure there isn’t anything that will sneak up on you. Being able to avoid any surprises will take that level of stress out of filing.
Having all your important documents ready to go will speed up the process and get you on the road to being debt free a lot faster.
Consider Your Options
Make sure before you file that bankruptcy is in fact what you want to do. Have you looked at all of your options and talked to a bankruptcy professional? Have you come to terms with the fact that the bankruptcy will stay on your credit for 7-10 years? Have you determined that filing for bankruptcy is your last resort? If so, then you just might be ready.
Filing for bankruptcy when you aren’t ready is a sure fire way to regret your decision. Make sure you do your research and are fully informed on the process. This will help take the shock factor away before you get started.
Decide On Your Approach
Deciding how you want to approach the topic of bankruptcy is important. Do you have a spouse that may not agree it’s the best option? Are you unsure if you should get a bankruptcy attorney involved? Do you know what type of bankruptcy you should file for?
Answering these questions will help you to know where you stand as far as filing goes. If you have a spouse that will be involved in the process it’s important you have their full consent. You will not be able to move forward with the bankruptcy without their signature. While this may sound silly this issue is common in divorce cases.
A bankruptcy attorney will be able to answer any questions and concerns you may have. They will also have the knowledge and experience to make the process as quick and painless as possible.
Deciding on the type of bankruptcy you will file whether it’s a Chapter 7 or Chapter 13, two of the most common types of personal bankruptcies, will depend on your situation. If you make too much you won’t be able to qualify for a Chapter 7 or if you have too much debt you may not qualify for a Chapter 13.
Make A Plan For After
Deciding what you’ll do after you file for bankruptcy is just as important as before. Having a plan for after you’re done paying off your debt is helpful so you don’t end up in the same situation. It will require a financial and a mindset change.
Not only will you need to create a budget and stick to it, but you’ll need to promise yourself to never get into debt again. Think about how tough of a process it was to get rid it and the emotional tolls it took on you. This will help you in the future when you’re deciding on a major purchase.
Set financial goals for yourself and you’re sure to stay the course.
Deciding to take on the task of bankruptcy can be a difficult decision and it shouldn’t be made lightly. Weigh your options and figure out if bankruptcy truly is right for you and your family.
If you decide a bankruptcy attorney is right for you we’d love to chat. Here at Bolinske Law we specialize in helping families get through the bankruptcy process and come out on the other side.
We answer any questions, develop a process, and are there with you every step of the way. Call us today to discuss your options.