3 steps to follow before declaring bankruptcy

Attorney Jerry E. Smith sees bankruptcy as the perfect way to start all over again, but with the proper steps and measures.

INDIANAPOLIS, August 30, 2022 /PRNewswire/ — The poor education surrounding bankruptcy has made the subject almost untouchable and the consequences more serious. A quick consultation with a bankruptcy attorney and prior knowledge of your financial situation will guide you on what to do if this happens.

What Qualifies as Bankrupt?

According to US courts, bankruptcy helps people and businesses who can no longer finance their debts to be able to repay them by selling their assets on the open market or by developing a repayment plan.

Jerry E. Smith, Founder and Principal Attorney of Jerry E. Smith, CPA Attorney, PC, said, “There are many types of bankruptcy chapters, and the majority of people are unaware of their nuances. This makes them hesitant to file for bankruptcy.. Even if they did, they don’t know where to start.”

How to declare bankruptcy

“Debtors are usually so worried about declaring bankruptcy that they forget the necessary steps to take,” Smith says. He adds: “Your level of preparedness determines how you fare during this period – with care you will be able to avoid the unexpected.”

Make sure you have followed these steps before declaring bankruptcy:

  1. Opt for credit counseling
    Federal bankruptcy law requires the debtor to consult a credit counselor six months before filing for bankruptcy. We generally advise debtors to sort through their financial records, such as child support, student loans, and alimony, to better understand their credit. With proper documentation, the bankrupt can know which assets are exempt.
  2. Find a bankruptcy attorney
    Hiring a bankruptcy attorney serves as a necessary insurance against mistakes that may have been made out of ignorance. The lawyer accesses your financial situation to determine the most appropriate chapter of bankruptcy to file your case. A credible bankruptcy attorney doesn’t have to be expensive.
  3. Pay essential bills
    Plan with our lawyer and assess which bills can be paid before completing. Although certain debts can be cancelled, there is no clause obliging the service providers to continue to offer you services for free. Don’t go on a spending spree because credit card debt can be overlooked. Be subtle.

About Jerry E. Smith Lawyer CPA, PC

With his experience as a cost accountant and financial analyst of multi-billion dollar companies, Indianapolis’ leading tax resolution and bankruptcy lawyer and CPA, Jerry E.Smith, sought to help debtors overcome debt problems. It focuses primarily on consumer debtors and small business owners.

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SOURCE Jerry E. Smith Lawyer CPA, PC

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