Bankruptcy Preparation - Common Mistakes

Finances has been super tight for months, or has it been years?  It seems there are bills that are mounting and you can’t see any light at the end of the tunnel.  You have what feels like hundreds of bills, what can you do right now to help you in case you have to file for Chapter 7 bankruptcy or Chapter 13 bankruptcy in Denver? 

Priority #1 — Keep your mortgage current — A home is one of the few assets a bankruptcy court will generally allow you to keep.

Priority #2 — Keep paying for essential services — Power, water, sewage are things you need to do to live.  Likewise, food still needs to be purchased (possibly scaled down some, but starving is not a legitimate option)…

Priority #3 — Stay current on student loans.  These debts are non-dischargeable, meaning even if you are successful in your bankruptcy filing, this debt will remain.

Priority #4 — Do not take on any additional debt.  If you are getting new debt, the courts will not look favorably upon this.  Cut up your credit cards, hide them in a tunnel…  stop using them!

This is a good start for “pre-bankruptcy” in Denver.  Of course you may have circumstances which would change this order around, so seeking an attorney who specializes in bankruptcy is a good option.  But these are good general principles for you to follow.