Pre-Bankruptcy Instructions Raleigh NC: Important Steps Before Filing for Bankruptcy

Pre-Bankruptcy Instructions Raleigh NC – Before making any financial decisions, contact us first! We are here to guide you through the process and help avoid potential complications.

Key Pre-Bankruptcy Instructions:

1. No Selling or Buying

• Avoid selling any property or making large purchases within 90 days before filing for bankruptcy.
• Buying luxury items can put your property at risk of being taken during the bankruptcy process.

2. Avoid Borrowing or Cash Advances

• Don’t borrow more money or use credit cards before filing.
• Taking cash advances can lead to delays or other issues.

3. No Family Repayments Pre-Bankruptcy Instructions

• Don’t repay family members before filing. The trustee may take back the payments made to family.

4. Prioritize Payments

• Make payments on secured debts (like car loans) if you want to keep the property.
• If you can’t pay all your bills, consult us on what debts should be prioritized.

5. Credit Card Usage

• Stop using credit cards immediately. Using credit cards before filing could cause delays.

6. Inheritance and Insurance Pre-Bankruptcy Instructions

• If you expect an inheritance within six months of filing, it could be taken in bankruptcy.
• Whole life insurance policies with non-spousal or non-child beneficiaries could also be at risk.

7. Banking Precautions

• Make sure you owe nothing to your bank, as they may freeze or take money from your account.

8. Vehicle Valuations

• Get the retail value of your vehicle from NADA.com. Each individual can exempt up to $3,500 equity in one vehicle. Sometimes you can use a wild-card exemption on your car and your car could be covered for $8500 in equity.