Bankruptcy Checklist

Bankruptcy Checklist - Spalding & Spalding Bankruptcy Attorneys - Louisville, KYWhen thinking about filing for bankruptcy, most people are overwhelmed or even lost. How do you know if bankruptcy is right for you? On top of that, there are several types of bankruptcy—how do you know which type you should file, or if you even qualify?

Bankruptcy could be the solution that helps you solve your financial troubles and get back on track. However, filing for bankruptcy is a big decision that should be given some thought. If you’re thinking about bankruptcy, the items below are the things that should be on your checklist.  Discuss these with your bankruptcy attorney to make sure that bankruptcy is right for you:

  • Budgeting for expenses:
    • Housing (Your rent or mortgage and other household expenses like electricity)
    • Food (Your grocery bill as well as the amount you spend eating out each month)
    • Insurance (Your car, house or renter’s insurance, life insurance, and any other insurance you might have)
    • Transportation (The amount you spend on gas and car maintenance or public transportation fees)
    • Education (The amount you spend on your or your children’s education, including any student loans)
    • Clothing
    • Medical (Your health insurance and any medical bills that you have)
    • Child care (Your day care or other child care provider expenses)
    • Entertainment (This part of your budget includes your expenses on fun things, such as going to the movies or museums)
    • Warning signs of bankruptcy:
      • Frequent calls from bill collectors or collection agencies they have hired
      • Inability to pay most or all of your bills
      • Liens filed on your property
      • Garnishment taken on your wages
      • Bank foreclosing on your house
    • Bankruptcy alternatives:
      • Working with your creditors to get more time to pay your bills
      • Going to credit counseling to get your credit under control
      • Getting a loan with a lower interest rate to pay your bills
    • Benefits of bankruptcy proceedings:
      • During your bankruptcy, creditors are not allowed to call you
      • Garnishment on your wages stops
      • Repossession of your car or other property stops
      • Interest charges on your debt stops
    • Debts that may not be dischargeable (gotten rid of):
      • Alimony (also called spousal support)
      • Child support
      • Student loans
      • Secured loans
      • Income taxes
      • Bills for “luxury items”
      • Debts that were obtained due to drunken driving, willful injury, or fraud
    • Partly protected property (property that is somewhat protected, which you may be able to keep some of):
      • Primary house/residence
      • Cars
      • Household goods
      • Bank accounts
      • Pension plans and your IRA
      • Boat
      • Jewelry
      • Computers and other electronic equipment
    • Other property:
      • Stocks
      • Bonds
      • Mutual funds
    • Bankruptcy schedules:
      • List of real property
      • List of personal property
      • Property claimed as exempt
      • Creditors holding secured claims
      • Creditors holding unsecured property claims
      • Creditors holding unsecured priority claims
      • Creditors holding unsecured nonpriority claims
      • Executory contracts and unexpired leases
      • Co-debtors
      • Current income of each debtor
      • Current expenses of each debtor

If you have more questions about bankruptcy, don’t hesitate to call our office.

About Wallace Spalding

Wallace Spalding has concentrated in Bankruptcy Law for over 25 years–helping people relieve the burden of debt and getting the results they deserve. He has been recognized as one of Louisville’s Top Lawyers in Louisville magazine in 2008, 2009, 2011, and 2012. Wallace Spalding's Google+ Profile

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