How to Prepare for Bankruptcy

How to Prepare for Bankruptcy

bankruptcy in Texas

Filing for bankruptcy in Texas is easy as long as you follow certain steps and procedures, and also avoid taking certain actions. People will many times think they are helping their case by paying off as many debts as they can, but the reality is they are hurting themselves more than anything. Preparing for bankruptcy requires advice from bankruptcy lawyers in Houston to ensure you’re doing things the right way. Here are some other ways to help you prepare for bankruptcy.

Speak to a Bankruptcy Lawyer First

Speaking to a reputable and trustworthy bankruptcy lawyer in Houston should be done as early as possible. Even if you don’t plan on filing for bankruptcy in a year or more, an experienced lawyer can tell you what you need to do and what you need to avoid during that time to help your case. The last thing you want to do is take a wrong step because you didn’t know it would hurt you.

Avoid Using Credit Cards

As you get close to filing for Chapter 7 in Texas, you need to refrain from using credit cards completely. Using a credit card signifies you don’t have any intent on paying the accrued debt back. Your bankruptcy case could get very complicated if you are unable to pay your bills and creditors, but you’re still accumulating debt on credit cards.

Don’t Transfer Any Assets to Anyone

Many people think preparing for bankruptcy in Texas means they need to reduce or transfer some of their assets. Any type of transfer like this will be discovered and it will complicate your case significantly. It may even complicate it to the point that you may no longer be eligible from a discharge of your debts.

Don’t Hide Anything

The main thing any lawyer will tell you is to not hide anything and disclose everything. Full disclosure allows the bankruptcy process to run its course and you’ll have a higher likelihood of having your debts discharged. Being honest goes a long way in a bankruptcy case, so don’t think you’re helping yourself by hiding certain things.

Bryeans & Garcia have helped dozens of people in successfully filing for bankruptcy in Texas since we’ve been in business for more than five years. Before you take any steps in your preparation for filing for bankruptcy in Fort Worth or Houston, give us a call to set up a free evaluation so you can take the proper action to help your case.