Filing For Chapter 11 Bankruptcy? Be Sure To Do These 4 Things

If you are getting close to filing for Chapter 11 bankruptcy, there are a lot of things that need to be done before you get all your paperwork submitted. Here is a list of important things to do before you officially file.

File Before Any Negative Actions Are Taken Against You

Being in debt can lead to a lot of tough situations to be in. There may be a judgment against you where your wages are garnished, or you are given an eviction notice from your home or apartment. It's important that you do not take too long to file for bankruptcy so do it before these things happen. This will help simplify the bankruptcy process so that you do not have to have these actions stopped.

Create A List Of All The Things Your Own

Part of your bankruptcy schedule will involve listing all of the assets that you own, which includes real estate, cash on hand, vehicles, and other assets that have a significant value and can be liquidated as part of the bankruptcy process. You should start this as soon as possible because it can take a while and is needed for bankruptcy.

Create A List Recent Payments Made To Creditors 

You'll also need to go back through your records and find creditors that you've recently made payments to. It's important to keep track of who received money, how much they received, and the date they received it. This is because those payments will be reviewed by a bankruptcy trustee, and have the potential to be clawed back if they feel you made the payments after knowing you would file for bankruptcy or made a preferential payment. 

Credit A List Of Debts That You Owe

The most important part of the whole process is listing all of the debts that you owe. Understand that the only way to have a debt discharged under bankruptcy is to list it when filing. If you forget to list a debt then it will not be dischargeable after the bankruptcy is approved. While there are ways to go back and amend your bankruptcy filing if necessary, it will be better off to have everything correct up front when you submit your initial filing.

Reach out to a bankruptcy lawyer in your area for more information on what you can do prior to filing. Having them on your team will ensure that the process goes smoothly.