Bankruptcy is a huge decision that will impact your life for months or even years. It can affect your income, your assets, and your financial decisions for up to seven years. However, bankruptcy is a life-saver for many; so it is still a good idea for those who are severely in debt. If you are thinking about filing bankruptcy, you should prepare by following these four tips:

1. Stop Automatic Payments

During bankruptcy all debtors are supposed to stop automatic payments. However, it can take months for this action to happen. If you are planning to file bankruptcy, contact all debtors and tell them to immediately stop any automatic payments from your credit cards and bank accounts. You do not want an automatic payment to hinder your ability to pay back debts or make important payments, such as rent or utility bills.

2. Stop Using Credit Cards

After you have decided to file for bankruptcy, you must stop using all credit cards immediately. Even though you will not be required to pay it back, you must stop using these credit cards. If you continue to use credit cards while you are filing for bankruptcy, you might be charged with fraud; since you know that you aren't required to pay it back. You should also avoid borrowing money from payday loan centers, friends, and family.

3. Hire an Attorney

While you can file for bankruptcy without a lawyer, it is always in your best interest to hire one. Bankruptcy can be tricky and without a lawyer from a place like Reppe Law Office, you might find yourself without a home or car. So always hire an attorney, especially if you have assets you want to protect. It will save you a lot of heartache and confusion down the road. However, be aware that you will be required to pay for the attorney; usually before you actually begin filing for bankruptcy. So save up some money and get the payments in as soon as possible.

4. Plan For The Future

Finally, make sure you have a plan in place for the future. Take a credit counseling class. Learn to live with just cash. Save your money. Although it might seem like recovery is far away, you can begin to rebuild your credit within a couple of months after filing for bankruptcy. So be prepared and plan to use your credit responsibly.

Filing for bankruptcy is a huge decision. However, if you have decided it is the right one for you, you must prepare yourself. These four tips, along with the advice of a bankruptcy attorney, can help you get back on your feet.