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If you've found yourself in a lot of debt and have no real way of paying it back, filing chapter 7 bankruptcy may be the best solution. This bankruptcy option is designed to help those in debt with limited income. Filing for it will go smoothly if you take these actions. 

Avoid Paying Creditors in Full 

After finding yourself in a lot of debt, your natural response may be to pay back as many creditors as you can in full. Although this may seem like a sound strategy, it's important to forgo these types of payments before filing chapter 7 bankruptcy.

In fact, paying certain creditors in full is referred to as preferential transfers. They will hurt your case and potentially prevent you from being able to file for chapter 7 bankruptcy. You could even get sued by other creditors for showing preference when trying to pay back debt.

Stop Using Credit Cards 

The last thing you should do when filing for chapter 7 bankruptcy is use your credit cards. This will only put you more in debt, which shows you didn't learn anything from this financial situation. That doesn't mean you need to cancel your credit cards though.

The best thing you can do is avoid using them altogether. Instead of credit cards, use your debit card and cash. This may require you to make a little extra money during this time, at least until you can get your finances in order after filing for bankruptcy. 

Hire an Attorney 

You've probably never had to file for bankruptcy before. It thus may seem like a foreign, scary process. Instead of going through it alone and possibly making a lot of mistakes, you should consider working with a bankruptcy attorney.

They'll take you through the necessary stages of filing for chapter 7 bankruptcy. They can assist with all of the paperwork, ensuring it's factually accurate and complete. They will also ensure you are financially responsible during this time. This way, you don't jeopardize your bankruptcy filing in any major way. Finally, this attorney can break down any unfamiliar terms or processes so that you know exactly what's happening. 

Even though filing for chapter 7 bankruptcy may seem like the end of the world financially, it doesn't have to be. It can give you a fresh start, in fact. Just take this process seriously and take the right precautions from the beginning. Then, you'll be able to move on with your life and start making better financial decisions. Reach out to a law firm like that of Price James S & Associates for more information.