Sometimes, people choose to file for bankruptcy after the first of the year. If you are planning on doing this, you have to make sure that you are taking appropriate steps now. One thing to remember is that you can't make purchases using credit now since the court is likely to frown upon these. It's also good to know how any tax refund will be treated in the bankruptcy. A bankruptcy attorney can help you prepare and determine whether to file before or after you receive any refund.
Starting to gather the information about your assets and debts now might be a good idea. Your bankruptcy attorney will need this information. You should be fully advised before making any moves to avoid mistakes. For example, if you owe friends or relatives any money, do not pay them with your tax refund before filing the bankruptcy. The trustee will take that money back from them. Talk to a lawyer to develop a plan.
Save up some money now to pay for the bankruptcy. These aren't cheap legal matters. Even if you are going to seek out a payment plan from the court, you will still have other expenses to cover. Remember, you might be able to include the costs of a Chapter 13 filing in with your repayment plan. You can't do this with a Chapter 7 filing.
The decision to file bankruptcy isn't one that is made without careful thought. You need to think about the impact to your credit report, but don't focus solely on this. Most people who file bankruptcy are financially responsible but have been put in a difficult situation. In some 50 to 60 percent of filings, this is a medical problem, but regardless of the cause, think about whether this is the best option for you to get control of your finances in 2019.