How to Spend Like the Bankruptcy Court is About to Discharge Your Debts

You have been considering filing for bankruptcy for years, but things are starting to feel different now that you have set a date in your mind to file your petition for Chapter 7 bankruptcy protection. Like an unhappily married spouse counting down the days to Divorce Monday, or for that matter, like a fiancé who has just booked a wedding venue, your thoughts are a swirl of relief, trepidation, and possibilities. What do you do between now and when you file your bankruptcy petition? Bankruptcy filings are not like marriage or divorce in that they do not spell the beginning or end of a relationship; your turbulent relationship with money will continue, and this discharge of debts may be one of many. If you file for bankruptcy more than once in your life, you are not the only person to do so. Filing for bankruptcy is a lot of work, at least as much work as planning a wedding, and the work begins long before you file any paperwork with the court. It also costs money, albeit less money than most California weddings. For help making financial plans for before and after your bankruptcy filing, contact an Oakland Chapter 7 bankruptcy lawyer.

Business as Usual, With an Additional Glimmer of Hope

Living from paycheck to paycheck while your debt balances hold steady, or worse, keep getting bigger, is demoralizing. The desire to splurge simply because you will be broke with or without that shiny new slow cooker is palpable. Despair spending, or whatever you call it when you make nonessential purchases you know you cannot afford, may be one of the factors that led to your decision to file for bankruptcy, but it should stop before you discharge these debts, not after. If you buy $400 of new clothes because you have $400 of available credit on a credit card you are planning to discharge in bankruptcy, this could cause the bankruptcy court to reject your case because the judge thinks you are not serious about your need for debt relief.

In the months leading up to your bankruptcy filing, you should stick to the same budget that barely enabled you to live paycheck to paycheck. This way, you can show the bankruptcy court that you have been making a sincere effort to pay down your debts, but you are in over your head. If possible, you should trim your expenses even further so that you can save money for the legal fees associated with your bankruptcy case. As you get closer to the date of filing, you might reduce your grocery bill even more by resolving to prepare meals with only the nonperishable ingredients you have at home, like you would do if you were planning to move out of your apartment.

Contact the Law Office of Melanie Tavare About Gearing Up for Bankruptcy

A debt relief lawyer can help you start getting your finances in order before you file your bankruptcy petition. Contact the Law Office of Melanie Tavare in Oakland, California, or call (510)255-4646 for a case evaluation.