If you can see yourself in bankruptcy in the next year and you are not planning you could be in for trouble. If there is any remote chance that you could file bankruptcy you should begin planning now. In my case, I met with a michigan bankruptcy lawyer before I made my decision to file for bankruptcy.
Why do I need to plan for bankruptcy?
If you are deep in debt you either has some bad luck or you didn’t pay close enough attention to your finances before you found yourself so deep in debt. If you are exploring what your debt relief options are available then you do so by planning ahead before you have to react and don’t have any choice. Reacting means you could be responding to a law suit or trying to remove a company from garnishing your wages. In addition, you need to know some of things that cause problems with you filing bankruptcy. As an example, your retirement money is safe from your creditors as long as it is in your account. Unfortunately, people panic when finding how much they owe in credit card debt and begin pulling money out of their retirement account when it could be multiplying and growing like the debt they owe. It should come as to no surprise that if a person pulls out 20K and then find out something happens like a spouse loses a job and foreclosure begins. They find out they can not file bankruptcy and have to wait over a period of time.
Planning prevents the appearance of fraud
If your son, daughter, mother or father asked you for money and you pulled the money out of your 401K and gave it to them and then filed bankruptcy the bankruptcy trustee would go after them for the money you gave them in order to pay your creditors. Knowing some of these little pitfalls can prevent several problems that could be created because you don’t’ have knowledge of the bankruptcy laws. Meeting for some free consults give you an idea of what to do and what not to do before, during and after you file bankruptcy.
