Special Tips and Advice Before Filing Bankruptcy

If you live in Connecticut and are considering bankruptcy, reading this article before you decide to file could save you a lot of heart-ache. One of the most important things to do before filing bankruptcy is getting all the information you need before you actually do, and this article will lay them all out for you.

So are there any special tips before you file for bankruptcy? Yes there is! The first tip is to ensure you don’t have any money in the bank. Nor should you have any money in a bank that you owe money to, i.e. credit card, personal loan, car loan, or mortgage.

Many people have automatic payroll deductions to a bank that they owe money to. I’ve told people, that when you open an account with the bank you sign a small index card with print so fine it can be printed on a grain of rice. In this small card it says that the bank can seize your account for any reason provided you owe them money! I swear if the bank could claim your vital organs they’d seize them if you failed to make your monthly payments.

Even if you are current with your payments to the bank I warn you not to have any money in the bank that you own money to. People who have worked in a bank and have experience with what I’m saying are well aware of how dangerous it is to have money in a bank whom you owe money to. I know it’s a hassle to stop your paycheck from automatically going into the bank or to stop your social security or pension check from automatically transferring to your bank, but it is very important.

I had a client that didn’t listen to my advice. We filed the bankruptcy and then the bank froze his checking account. He couldn’t access any money. At the same time, he got a notice from the utility company that they were going to turn off all his power. The problem with this was that he was on a payment plan and he purchased all his food in one shot for the month and put it into a freezer. Well naturally he panicked and thought he was going to lose a thousand dollars worth of food! In the end I was able to put a stop to this but the moral of the story is that he should not have had any money in the bank that he owed money to.

That is just one of my war stories. I’ve practice bankruptcy in Connecticut all my life and this is definitely one of the strongest tips I can give my clients but for more tips, simply visit my website and read some of my articles. I am more than happy to help you: http://www.actionadvocacy.com/