Five Steps to Take Before Filing Bankruptcy

Before you file bankruptcy, there are five things you should consider doing to put in order yourself and your family. Remember, these things may be requisite because you are going to damage your credit rating for years. There are some prominent things you should consider before you damage your credit. The credit commerce does not want you to know these five things, but these are my recommendations to my bankruptcy clients.

First, is your car older or in need of repairs? Has the warranty on your car ended? Is there a possibility that your car will need high-priced repairs in the near future? If you answered yes to any of these questions, then you should consider taking care of or replacing your car before you file bankruptcy. It is likely that you will not get credit to repair or to replace your car for several years after you file bankruptcy. So, either do the requisite repairs or replace your car before you file bankruptcy.

Dental Braces

Second, is your home likely to need high-priced repairs such as a new roof or air conditioning? Does your home need to be painted, or does it need high-priced plumbing? Does it need its windows or doors replaced? anything the high-priced repairs or replacements, do them before you file bankruptcy. After your bankruptcy is filed, you probably will not be able to get the credit you need to take these high-priced steps.

Third, do you need new appliances such as a washer and dryer? Is your television or your computer on borrowed time? Do you need a new stable door opener? Does your home need a safety system? As with the home repairs or replacements, you should consider the age of your appliances and either it is likely that they will need to be replaced in the near future. If you answered yes to any of these questions, then replace the appliances, television, etc. Before your bankruptcy is filed. Again, you may not be able to get the credit you need to take care of these prominent items after your bankruptcy is filed.

Fourth, do you or your children need ample dental work? Do your children need braces? Does your family need root canals, caps, or some other high-priced dental procedure? Again and for the same speculate as stated in the previous three items, get the dental work done before you file bankruptcy. Before bankruptcy, it is likely that your dentist or dental surgeon will allow you to make payments to take care of the dentistry. After bankruptcy, it is unlikely that he or she will allow you to make payments.

Fifth, does your family need new clothing, shoes, coats, or other personal items. Again, you may not be able to buy these requisite items on credit after the bankruptcy is filed. You indubitably should take care of these prominent needs before you file bankruptcy.

I am not talking about being extravagant or buying luxury items. I am just talking about taking care of yourself, your family, and your home before your credit takes a dive as a consequent of your filing bankruptcy. For example, move into a new apartment before you file bankruptcy. You do not want to come out of bankruptcy with a car or a home that needs ,000 - ,000 in repairs. There are better ways to take care of your family before the bankruptcy.

It is unlikely that anything else will give you this advice, but I strongly advise you to sit down with your family and think about what your family will need over the next five years. Remember, a bankruptcy stays on your credit for 10 years. There may be some credit you can qualify for before the 10 years is up, but you will probably pay a higher interest rate after the bankruptcy is filed. Think about how you can best take care of your family, and do it.

Five Steps to Take Before Filing Bankruptcy