I thought I’d share a few “todo”‘s to keep in mind while you’re considering bankruptcy:
1. Keep your retirement account safe. Your retirement account can often be completely exempted from the bankruptcy. Don’t solve a problem today only to have a bigger one years from now.
2. Get your tax returns filed and keep copies. You’ll need them if you decide to file bankruptcy.
3. You’ll also need all your pay stubs, so keep those too.
4. Be cautious about debt settlement offers. Even the legit ones can have serious tax consequences.
5. If you’re serious about filing, stop paying the credit cards! Keep the payments current on property you want to keep.
6. Again, if you’re serious, don’t make any large payments on loans to friends or family members. The trustee can get that money back and it can cause real problems. That doesn’t mean it’s too late if you’ve made payments, just be sure to tell your attorney so it can be dealt with.
7. Keep careful track of any property you sell or transfer (who received it, how much, etc). Don’t give away property or sell it at a discount to friends.
If you have any questions about these things, don’t hesitate to contact me.