Why It Is Important to Plan Ahead Your Bankruptcy Filing

Planning Ahead For Your Bankruptcy Filing

Many consumers don’t realize that you can plan filing for bankruptcy months and even years ahead of time. It is not only a wise idea but it may help you avoid common challenges that keep debtors from completing the filing process successfully. Understanding your options may help you retain property while learning when it’s best to file.

If you are considering bankruptcy there are certain situations you want to avoid. Hiding assets, selling personal property, making numerous charges on credit cards and hiding pertinent details about your situation are just a few actions that could hurt your case if you don’t take time to plan ahead. Because bankruptcy is a federal process, there are rules associated with situations previously mentioned that could cause your case to get dismissed in court or face legal consequences.

The good news is the pre-bankruptcy planning allows you to learn about exemptions and how to make them work for your situation. Maximizing exemptions help you protect personal property and assets legally. Not only do you learn about assets that are protected, you’ll gain clarity on assets that are off limits to creditors. In some cases, payments made to creditors before you file bankruptcy could be collected back by your bankruptcy trustee.

Planning ahead also helps get truth behind misconceptions and myths often heard by consumers considering bankruptcy. Many are misled by false information and decide not to file instead of following up with an experienced bankruptcy expert.