What to Do When You Decide to File for Bankruptcy

Filing for bankruptcy is a big decision in your life, for some it is the best option for getting out from under debt, for other people it’s not a good decision as they could pay off their bills with some financial counseling. For people who are still not sure if bankruptcy is right for them, consulting with one of our Dallas bankruptcy attorneys can help further assess the specifics of your case.

Once you decide to file for bankruptcy there are a few things you should do to help you begin to recoup some of your losses and prepare for the expense of the bankruptcy filing.

Stop Paying

Ask your attorney which of your debts are most likely to be eliminated after your bankruptcy. Then stop making payments toward those debts.

Sell Assets

If you have some nonexempt assets that you can unload then you may want to start selling them now. If you can take this money and use it toward your living expenses and bankruptcy filing and attorney fees you’re better off than you will be if you’re required to sell them to pay off debts after the bankruptcy.

Ask for Help

You don’t want to try to get a loan at this point, but if your family or a friend is willing to give you the money you’ll need to get through this difficult time, and pay your bankruptcy fees, this may be what you need to do. You don’t want to formalize a loan because that will just be discharged during the bankruptcy. After your bankruptcy has been discharged you can decide to repay the favor.