What do I tell my creditors now, before I file bankruptcy?

Do not tell any of your creditors you are thinking of filing bankruptcy or that our office is representing you yet. Otherwise you can tell them what you wish regarding your intentions toward those debts.

Additionally, if you decide to file bankruptcy, you should immediately stop using any of your credit cards or lines of credit for purchases or cash advances, cut up your credit cards and immediately stop paying these creditors anything if you will be promptly retaining our offices to file the bankruptcy.

Save the money you would be using to pay your unsecured bills, such as credit cards and medical bills, for what you will need for your attorney fees, any security deposits for utilities and to give yourself a savings cushion.

Keep up to date all payments on any secured debts for collateral, such as vehicles and your home, that you wish to keep.

If you have a deposit account (checking, savings) at a bank or credit union where you also have an unsecured loan or credit card you should immediately close out that deposit account and move the funds to a financial institution where you do not have any credit outstanding. Likewise, if you have money, such as a pay check or Social Security automatically deposited to a checking or savings account where you also have credit you should change the bank to where the funds will be deposited to a financial institution where you have no credit. The reason to take these steps is to avoid the financial institution possibly taking funds out of the checking or savings account to apply them to the payments due on the credit card or other credit account.

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