3 Steps to Take Before Declaring Bankruptcy

Attorney Jerry E. Smith views bankruptcy as the perfect way to start all over, but with the appropriate steps and measures.

INDIANAPOLIS, Aug. 30, 2022 /PRNewswire/ -- The miseducation surrounding bankruptcy has made the subject nearly untouchable and the consequences more severe. Prompt consultation with a bankruptcy lawyer and having prior knowledge about your financial situation guide you on the steps to take in the event it happens.

According to the United States Courts, bankruptcy helps people and businesses who can no longer finance their debts to be able to repay them by selling their assets to the open market or crafting a repayment plan.

Jerry E. Smith, founder and principal attorney at Jerry E. Smith, Attorney CPA, PC, stated: "There are several types of bankruptcy chapters, and the majority of people are unfamiliar with their nuances. This makes them hesitant to file for bankruptcy. Even if they did, they are clueless on where to begin."

"Debtors are usually so apprehensive about the thought of declaring bankruptcy that they forget the necessary steps to take," Smith says. He adds, "Your preparation level determines how you fare during this period — with care, you will be able to prevent the unexpected."

Ensure that you have taken these steps before filing for bankruptcy:

1. Go for Credit Counseling
   The Federal Bankruptcy Law demands that the debtor see a credit counselor six months before proceeding with the bankruptcy filing process. We usually advise that debtors sort through their financial records, like child support, student loans and alimony, to better understand their credit. With adequate documentation, the bankrupt can know what assets are exempted.
2. Find a Bankruptcy Attorney
   Hiring a bankruptcy lawyer serves as the necessary insurance for mistakes that would have been made in ignorance. The attorney accesses your financial situation to determine the most suitable bankruptcy chapter to file under. A credible bankruptcy lawyer does not have to be expensive.
3. Pay For Essential Bills
   Plan with our lawyer and assess what bills can be paid before filling. Although some debts may be written off, no clause requires service providers to continue offering you services for free. Do not go on a spending spree because credit card debts may be overlooked. Be subtle.

Drawing from his experience as a cost accountant and financial analyst of multibillion-dollar companies, Indianapolis' foremost tax resolution and bankruptcy attorney and CPA, Jerry E. Smith, has sought to help debtors navigate debt problems. He focuses primarily on consumer debtors and small-business owners.

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SOURCE Jerry E. Smith Attorney CPA, PC