4 Steps to Take before Filing for Bankruptcy

July 20, 2015

When you have made the decision that filing for bankruptcy is the best way to resolve your debt issues, there are some things that will be important to do before you officially file your bankruptcy petition with the court.

If you fail to take these steps before bankruptcy, you could complicate your case, setting yourself up for a dismissal (which means you would have to wait at least 180 days before you would be eligible to refile for bankruptcy).

Here’s What You Should Do before Filing a Bankruptcy Petition

1 – Complete the means test

Colorado Springs Bankruptcy attorney 4 Steps to Take before Filing for Bankruptcy

Before filing for bankruptcy, here are some important steps to take, an experienced Colorado Springs bankruptcy attorney explains. Contact us for help resolving your debt issues.

The means test is basically an analysis of your income versus debt obligations to evaluate your ability to repay your creditors and, in turn, determine what type of bankruptcy case you qualify for. When people “pass” the means test, they qualify for Chapter 7 bankruptcy, as the test has indicated that they don’t make enough to be able to pay back their creditors.

Those who don’t pass the means test (because, for instance, they make too much money) will not be eligible for Chapter 7 but can, instead, pursue Chapter 13 or Chapter 11 bankruptcy.

2 – Attend an approved credit counseling course

By law, everyone filing for bankruptcy in Colorado has to complete a state-approved credit counseling program before their case can proceed. For a current list of the approved credit counseling providers in Colorado, click here.

3 – Compile your important financial documents

Some of this paperwork will likely include (but may not be limited to, depending on your situation):

  • Bank statements for at least the past 12 to 24 months
  • Your income tax returns for the past two years
  • Loan documents for your outstanding debts
  • A detailed list of all of your current debt obligations
  • A detailed list of your monthly expenses
  • A detailed list of all of your current property holdings.

4 – Consult with a lawyer

The final thing to do before filing for bankruptcy is to consult with an attorney. Even if you think you have done everything right, meeting with an experienced bankruptcy lawyer can help you identify potential challenges in your case moving forward and what you may be able to do now to minimize or avoid such complications.

Colorado Springs Bankruptcy Attorney at the Law Office of Jon B. Clarke, P.C.

Are you struggling with debt and ready for a financial fresh start? If so, it’s time to contact a trusted Colorado Springs bankruptcy attorney at the Law Office of Jon B. Clarke, P.C.

To find out more about your best debt relief options, as well as how we can help you obtain the financial fresh start you need and deserve, contact us today by calling (303) 779-0600 or by emailing us using the contact form on this page. We also encourage you to complete our Business or Consumer Debtor Analysis Form so that we can provide you with professional advice that is as specific and helpful as possible.

From our offices based in Denver and Greenwood Village, we provide people throughout Colorado with the highest quality debt relief legal services.

Categories: Bankruptcy