Bankruptcy is an unfortunate reality for many consumers. Even worse is that the decision to file for bankruptcy is often times made after a person’s wages have begun being garnished, or a levy has already been put on their bank account.
Today’s blog will help you to take the steps necessary to use bankruptcy correctly and do it before creditors make it much harder. We don’t necessarily condone filing for bankruptcy but, if that’s your plan already, taking the steps will help. Enjoy.
Step 1: Know where you stand
If you don’t know exactly where you stand financially, the chances that you will react after creditors and debt collection agencies have started taking your money is a real possibility.
Step 2: Request reports from the 3 major credit bureaus
Following Step 1, getting your credit reports from the 3 major credit bureaus will help you to know more about all of your accounts, old and new, and help you prepare.
Step 3: Check Republic records
One of the easiest ways to find out if a bank levy or garnishment is set to begin is to check public records and see if a creditor judgment shows up there.
Step 4: Use your credit report to see if your current employer is listed
You can bet that all creditors and collection agencies do their very best to find you, your bank and your employer. Looking at your credit report is a great way to do that and, if your employer is listed there, you might try having that information removed.
Step 5: Don’t keep a lot of money in your bank account
It used to be that creditors had to levy the bank branch where you opened your account but that’s no longer the case. In fact, all they need to do is provide the bank’s corporate office with the judicial levy authorization order and they’ll have access to your money. If they levy that account before you file for bankruptcy, you probably won’t be getting it back.
Step 6: Avoid a bank levy or garnishment by setting up a payment plan through your creditor first.
Step 7: If you can’t afford to set up a payment plan and pay your bankruptcy attorney, pay your bankruptcy attorney only
Without their help your bankruptcy won’t progress and you’ll end up losing anyway.
Step 8: Make sure your case gets filed
Many consumers pay their bankruptcy attorney but never send back the paperwork to file the case. Then, after their creditors begin garnishing their wages or levying their bank accounts, they rush to get it done but it’s too late. Don’t do that. File your case as quickly as possible after your attorney has been paid.