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3 money moves to make before filing your bankruptcy papers

On Behalf of | Jan 13, 2023 | Chapter 7 And Chapter 13 Bankruptcy |

Those researching bankruptcy usually hope to find ways to ensure they succeed in their efforts. While it is wise to focus on ensuring success, do not overlook steps to take ahead of filing for bankruptcy.

If you make the right money moves now, you have better odds of living as comfortably as possible during (and after) your bankruptcy. The recommendations below should get you thinking in the right direction.

Cease credit card use

When your finances are in jeopardy, resist the temptation to use your credit cards for purchases and paying bills. Using them anyway could qualify as fraud since you know you cannot pay your credit card bills.

Cancel automated payments

It is easier than you might expect to forget about canceling automated payments for bills or subscription services. Although creditors must stop taking payments once you file for bankruptcy, it could take time for them to stop altogether. You can address this potential problem by ending all automated transactions before you file your bankruptcy documents.

File your tax returns

Vital tasks like filing your tax returns can fall to the wayside when you are in the middle of bankruptcy planning. You may think this is a minor issue, but your tax returns help create an accurate assessment of your financial situation. This step also helps ensure your bankruptcy flows smoothly.

Another critical step to take ahead of your bankruptcy filing is to increase your knowledge. For example, learning more about Chapter 7 and Chapter 13 bankruptcy in New Jersey helps you understand the process as you go through it. Guidance from a knowledgeable legal professional can also help.