Are you thinking about filing for bankruptcy? If you racked up excessive debts and you think bankruptcy is the only way out, here are some things that could help you prepare for the proceedings.

  1. List all your income sources and assets

Yes, even your part time job is considered as an income. So, include everything that brings money to your pocket in the list. If you have children who are working students and they still stay with you, make sure to include their income if you want to list them as your dependents.

If you have a car and other types of asset, include them in the paperwork. Not listing them would be the best way to lose the asset. Even a car which secures a loan must be included, not as an asset but a liability.

  1. Include all your creditors in the mailing list

Creditors will know if you have filed for bankruptcy. That’s why even if you don’t list your credit card in the paperwork you will not be able to use it anymore. While you may have to deal with the fact that you cannot use credit cards or apply for short-term loans during the bankruptcy proceeding, you may still be able to do so after the bankruptcy.

Your creditors would receive a notice from the court informing them about your bankruptcy. So, if you intentionally omit some of your creditors, they will not be able to participate in your bankruptcy case.

Moreover, if you don’t have money that your trustee can use to pay off your creditors, they will be barred from collecting from you after your discharge. However, if you omit a creditor in your petition, he or she will still be able to collect payment or worst, file a suit against you. If you have assets and some of your creditors don’t receive a notice of your bankruptcy, they will lose the opportunity to prove its claim on your assets and collect payment for your debts. Nonetheless, omitting them would not take away their right to go after your non-exempt assets or to pressure you to repay them after your bankruptcy.

  1. Make a list of your potential and pending lawsuits, if any

If you have potential claims make sure to include them all in your bankruptcy paperwork. Even small money claims to former boss or friend must be listed. The trustee that the courts will appoint needs to know these potential claims.

  1. Make sure you qualify for bankruptcy. Some people decide to file for bankruptcy despite the fact that they do not meet all the requirements. Sometimes they leave some assets and income sources just to qualify. Doing so can either result to the dismissal of the application and worst, you will be barred from filing for bankruptcy at the time that you already needed to file it so badly.

There are many options for those who have to deal with multiple debts, such as debt consolidation, debt management and short-term loans to help you get back on track. NSW Mortgage Corp offers many loan products for people with bad credit and those who are contemplating bankruptcy.

Contact us today!