5 things to do before filing for bankruptcy in Houston
So you think that your finances are in tatters and you want bankruptcy protection as you fix them? This is wonderful because you have already done half the job. Most people wait until the creditors start taking their properties before initiating the bankruptcy filing process. The average Houston bankruptcy lawyer will tell you that you stand to save over 60% of bankruptcy costs if you can do some of the tasks the lawyers do for you. Below are 5 things that you do not need a lawyer to do.
Analyze your Finances
With a calculator and documents such as receipts, bills, bank statements and pay slips, you can analyze your finances very easily. All you are required to do is make a list of all your incomes, say for a particular month. You also need to make a list of all your expenses, also for that month. Then you need to make a list of all your assets and another one for all your liabilities. Now compare the incomes against the expenses. Do your expenses exceed your incomes by a substantial amount? Compare your assets against your liabilities; do your liabilities exceed your assets? What if you combine your assets and incomes and then deduct all your liabilities and expenses…do the liabilities and expenses outstrip the assets and incomes by a substantial figure? Do you expect a big income in the foreseeable future? If you find your finances are with the ‘dogs’, it is time you did something – getting your Houston bankruptcy lawyer being one of them.
Get your Credit Rate Report
Can you get additional financing from your bank to pay off your debts? Has the bank blacklisted your account and you cannot withdraw any funds using your credit card? Is it virtually impossible to even get a loan from friends and relatives? Maybe it is time you instructed your Houston bankruptcy lawyer to file a bankruptcy petition for you. Many people tend to become shy about their finances. Well, if you find your situation is this bad, you do not have the luxury of ‘many people’. You need to act as quickly as you can to correct the problem or find yourself on the streets.
Debt collection and Creditors Notification and renegotiation
If you find yourself a potential bankruptcy case, do not panic. It is time you asked your debtors to honor their obligations to you. It is also time you stopped playing hide and seek with your creditors. You need to go to your creditors and try and renegotiate new terms with them before they start putting bad credit alerts on you. The earlier you inform them, the more goodwill you might have. Who knows, you might even avoid the Houston bankruptcy court.
Get Legal Counsel
Legal advice is important when going about the process of cleaning your finances. You might do something that might be interpreted by the court as bad faith. This ruins your chances of bankruptcy protection. Make sure the attorney you get is worth your time and money.
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