Filing for Chapter 7 bankruptcy is a big decision and step to take in life, and if you do this, you will want to do it right. The goal of Chapter 7 is to help people get a fresh start, and this is accomplished by forgiveness of debts. To get the best results from your bankruptcy, you will need to make sure every single debt is listed on the paperwork, and here are three tips that will help you with this.
Pull your credit report
While everyone is entitled to receive a free copy of their credit report each year, many people never take advantage of this. Before you file for bankruptcy, pull your credit report and look it over carefully. This document should contain the majority of the debts you owe, and you can ask a bankruptcy attorney which debts on it could be included in your bankruptcy.
Chapter 7 bankruptcy can be used to discharge most types of debts; however, there are exclusions, including child support, student loans, and back taxes.
Look through old bills
The second thing you should do is look through all your bills, and this might involve digging through stacks of bills from the last year or two. There is a chance that some of the debts you owe might not be on your credit report.
For example, if you owe a lot of money to a company for water softener rental, this company may not have reported it to the credit bureaus, but it is still money you owe. This type of debt could be included on your bankruptcy, but you might have forgotten about it if it is old.
Don't use your credit cards
Finally, if you want the bankruptcy to discharge as many debts as possible, stop using your credit cards at least 90 days before you file. Any credit card charges that occur within less than this time frame may appear to be attempt at fraud. Your credit card company could appeal these charges on the bankruptcy, so it is better to just stop using the cards three months beforehand.
You should also realize that cash advances from credit cards taken within 70 days of filing will usually be excluded from bankruptcies too.
With these tips in mind, you can confidently file for bankruptcy and know that all of your debts will be discharged through this. If you would like more information about bankruptcy, contact an attorney like FactorLaw in your area.Share