5 Questions to Answer When Preparing for Bankruptcy

September 30, 2015

Once you have decided to pursue bankruptcy to resolve your debt issues, you may need to take some extra steps to get ready to file for bankruptcy in the near future. By answering the questions below, you can start to figure out what these steps may be for you, given your financial situation and goals.

When, however, you need some professional assistance answering these – or other – questions about bankruptcy, don’t hesitate to contact a Denver bankruptcy attorney at Jon B. Clarke, P.C.

Answer these Questions to Start Preparing for Colorado Bankruptcy

1 – Have I passed or taken the means test?

As you prepare to file for bankruptcy, answering these questions can help you position your case for success, a Denver bankruptcy attorney explains.

As you prepare to file for bankruptcy, answering these questions can help you position your case for success, a Denver bankruptcy attorney explains.

The means test is essentially a complicated calculation that compares your debt to income in order to determine if you qualify for Chapter 7 bankruptcy, which would allow you to discharge certain debts (like credit card debt, mortgage debt and medical bill debt).

If you have not taken the means test yet, this is likely the next thing you should do to figure out if Chapter 7 is an option for you.

2 – Do I have nondischargeable debts?

Some of the most common nondischargeable debts people have include student loans, child support debt and even certain types of tax debt. Understanding which of your debts are (or are not) dischargeable is another important thing to consider when preparing for bankruptcy, as this can help you decide whether Chapter 7 or another option may be better suited for you.

3 – Can I take advantage of any bankruptcy exemptions?

This is a key bankruptcy planning consideration, as bankruptcy exemptions can allow you to retain certain assets – like a home, vehicles and other personal property – through the bankruptcy case.

In fact, depending on your situation, you may be able to effectively plan to take advantage of as many bankruptcy exemptions as possible, allowing you to preserve and keep more of your assets than would have otherwise been possible.

4 – Have I completed the credit counseling requirement?

If you have not, you need to before filing for bankruptcy. Otherwise, you can face having your case dismissed, which would mean that you have to wait at least another 180 days before you can file for bankruptcy again. Over this time, your debt situation can get worse, and creditors may have the opportunity to move forward with lawsuits or wage garnishments.

You can see a full, up-to-date list of approved credit counseling services in Colorado here.

5 – Have I done anything that could result in a dismissal of my bankruptcy petition?

Specifically, have you hidden any assets? Have you racked up more than $600 in credit charges over the past few months? Or have you been less than completely honest on your bankruptcy paperwork that you are preparing to file with the court?

If so, you run the risk of sabotaging your own bankruptcy case and potentially facing bankruptcy fraud charges.

Denver Bankruptcy Attorney Jon B. Clarke Can Help You

For help obtaining a financial fresh start, contact trusted Denver Bankruptcy Attorney Jon B. Clarke. For more than 35 years, Mr. Clarke and his diligent support staff have been successfully helping our clients resolve even the most complex bankruptcy cases for individuals and businesses alike.

To get answers from an experienced and esteemed lawyer, contact us today. We encourage you to complete our Business or Consumer Debtor Analysis Form. You can also get answers from Denver Bankruptcy Attorney Jon B. Clarke by calling our firm at (866) 916-3950 or by emailing us using the contact form on this page.

From our offices based in Denver, Castle Rock and Greenwood village, we take pride in providing people throughout the state of Colorado with the highest quality debt relief legal services.

Categories: Bankruptcy