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Bankruptcy attorney advice: 5 things to do to prepare for filing for bankruptcy in Knoxville, TN
May 7, 2021 at 7:00 AM
Bankruptcy attorney advice: 5 things to do to prepare for filing for bankruptcy in Knoxville, TN

Filing for bankruptcy is a major step to take for your financial future. Unfortunately, it can feel like the only option available to help repair the damage that has been done to you or your business. In order to make the process of getting your debt discharged go smoother and without issues, there are things that you can do to better prepare yourself for what’s the come. At DZ Law, we want to provide you with advice from our team of bankruptcy attorneys in Knoxville, TN.

Get copies of credit reports

In order to present the courts with a comprehensive list of your debts, you’re going to need to compile copies of your credit reports. This will provide a history of your accumulation of debt as well as your payment records.

Open a new bank account

Many people do all their banking with one institution. This includes checking and savings accounts as well as credit cards, car loans, and mortgages. If you’re filing for bankruptcy, there’s a chance that your bank will close your account. Prepare ahead of time by opening an account with a new financial institution. This gives you a place to land should your account be closed.

Take a credit counseling course

Before filing for bankruptcy and receiving a debt-canceling discharge, the government requires that individuals take a credit counseling course. These courses are held by a nonprofit agency to help you understand what it means to file for bankruptcy and provides you with advice to see whether or not you can reasonably handle your debt without bankruptcy.

As a part of these courses, you’ll be required to do a number of things that include:

  • Disclosing all aspects of your financial situation.
  • Show that you’ve been through credit counseling by the US Trustee’s office no more than 180 days before filing for bankruptcy.
  • Either pay a filing fee, request a fee waiver, or pay the fee in installments.

Continue regular payments

It’s common to want to pay off certain debts before you file for bankruptcy. These could be anything from car loans to significant debts to family members. It’s wise to continue making your regular payments because the bankruptcy trustee can sue to get these funds back. This is called a clawback suit and it allows a trustee to seek compensation from those who either knowingly or unknowingly received financial benefit via early involvement with your bankruptcy case. This window can be as early as three months before you file for bankruptcy or even longer if you repaid a family member or friend.

Be Honest

You won’t benefit from hiding anything when it comes to filing bankruptcy. The best approach is to be open and honest with all your financial dealings so that nothing in the future comes back to haunt you. Honesty will play a major role in the final decision made by the bankruptcy courts in whether or not your debts will be discharged. This requires that you fully disclose all property, debts, assets, creditors, and so forth as a part of your filing.

Bonus: hire a bankruptcy attorney

Don’t go through the bankruptcy process by yourself. Get help from legal experts who will make sure you’re doing what’s right for you and your future. Hire a bankruptcy attorney in Knoxville, TN with DZ Law today. We’ll provide you with sound advice that will get you through the legal process and on your road to financial recovery. Call our office today at 865-259-0020 or reach out using our contact form. We’re here to represent you.