Before you can file for Chapter 7 bankruptcy, you may need to do a few things. Preparing for bankruptcy can take some time, and you might want to ask your lawyer what you must do to prepare. Taking the right steps can help you have a more successful case, and it can eliminate the potential problems you might face otherwise. Here are some of the top things you can do to prepare for a Chapter 7 bankruptcy case.

Avoid Earning Extra Money Before Filing

To use Chapter 7, you must meet the income requirements. If you earn too much money, you will not qualify. The good news is that most bankruptcy courts only look into your life for the last six months. If you avoid earning extra money during this time, you might qualify for this bankruptcy branch. You should also avoid accepting windfalls of cash, such as lottery winnings, lawsuit settlements, or inheritances, as these count as income.

Do Not Do the Wrong Things With Your Assets

The second way to prepare for a Chapter 7 case is by knowing how to handle your assets. One risk you take when filing for Chapter 7 is the loss of assets. The court can take things you own. As a result, people often try to give things away or sell them before filing to avoid losing them. You should not do this, though, as the courts view this as fraud. If they catch fraud in your case, they may dismiss it.

Do Not Rack Up Intentional Debt

The third way to prepare for bankruptcy is to avoid racking up intentional debt. Some people will charge extra purchases on their credit cards with the intention of getting a discharge through bankruptcy. Courts also view this as fraud, so you should not do this before filing.

Gather All the Paperwork You Need

The final way to prepare is by gathering all the necessary paperwork you will need for your case. You will need a lot of different forms and documents, and you can start with your debt statements. You may also need your bank statements from the last year and your last few tax returns. Your lawyer can give you a list of everything else you will need to file your case.

Preparing for Chapter 7 is vital for anyone that wants to use it. If you are ready to file for bankruptcy, talk to a bankruptcy attorney in your city today.