Filing bankruptcy in Modesto is a fairly straightforward process. There are a few things you must do before you file in order to ensure that your bankruptcy filing is valid and in order to preserve as much of your credit rating as possible. Following these five steps can also help expedite the process:
1. Evaluate Your Recent Purchases. Any large purchases made just prior to filing may be seen by a bankruptcy court judge as fraudulent. Just because you know you're about to file doesn't mean you can run out and buy a new car, a new wardrobe and take out cash advances on your credit cards and think that the bankruptcy will wipe the slate clean. This is highly risky behavior that can end up getting your case dismissed at the least and having you charged with fraud at the worst.
2. Enroll in Approved Credit Counseling. According to the sweeping bankruptcy law changes in 2005, people who want to file for bankruptcy must attend mandatory credit counseling prior to filing. In this session, a counselor will spend 60 to 90 minutes reviewing your financial situation, suggesting alternatives to bankruptcy and creating a personal budget plan. This session costs around $50, depending on where you live and the services received.
3. Request a Fee Waiver. If you know you cannot pay for your credit counseling session, you must request a fee waiver from the organization conducting the counseling prior to your session. Approved credit counseling organizations can be found on the U.S. Trustee's website.
4. Obtain a Certificate of Proof. After your session, be sure to obtain a Certificate of Proof of completion. This is required in order to file.
5. Get a Professional Bankruptcy Attorney. Although you can file for bankruptcy on your own, it is not advisable. The paperwork involved is labor-intensive and you must know the intricacies of dozens of federal laws. Do yourself a favor and hire a professional.
