5 Tips for Navigating the Personal Bankruptcy Process [infographic]

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Credit card bills and unpaid bills can be a source of continual stress and worry. If you have decided to move forward with the personal bankruptcy process, the following tips can make the ensuing process go smoothly and reduce any related stress.

5 Tips for Navigating the Personal Bankruptcy Process

1. Establish your purpose—Figure out the outcome you want to achieve before you file bankruptcy. Although getting out of debt may be your priority, you may also have other financial goals.

2. Hold onto your property—Wait to sell, transfer, or get rid of any valuable assets or property, like your vehicle or your house. If you sell any major assets before you file, the courts may view this action as trying to hide your property.

3. Disclose your finances—Disclosing your personal finances can be difficult to do. But you need to be 100% honest regarding your financial situation before filing by disclosing all of your debts, personal loans, and your personal income.

4. Stay current with your secured debts—Do not stop making payments on any secured debts you possess (i.e., vehicle and mortgage payments). This is particularly important if you intend on keeping your vehicle or home following the bankruptcy process.

5. Reassess your budget—Filing bankruptcy can be your opportunity to get a fresh start financially. Reassess the way you use debt and revamp your budget, so you can prevent getting into significant debt again in the future.