If you are in over your head and considering bankruptcy, you may be worried about building back up your credit after bankruptcy. This fear can lead you to do crazy things before filing for bankruptcy. Take a look at some mistakes that may be detrimental to your bankruptcy case.
4 Mistakes Before Bankruptcy
If you are in desperate circumstances and ready to file for bankruptcy, it may feel like you have no control over the situation. Set yourself up for success by complying with the rules of bankruptcy and making honest reports of your assets:
1. Taking on New Debt: If you know you are going to file for bankruptcy, maybe you better buy a new TV before your debt is wiped, right? Wrong. Your financial records will become public in the bankruptcy procedures, and your dishonesty will be detected.
2. Transferring Assets to Friends or Family: It may be tempting to turn over your possessions to a friend, so they are not subject to repossession. But if you are willing to enter into a bankruptcy contract, you must follow all of the rules.
3. Hiding Cash: If you have a stack of cash that is not documented, you may be tempted to keep it from the bankruptcy process. However, if the financial records point to missing money, you will be required to show where it went.
4. Not Hiring a Lawyer: The bankruptcy process will go much more smoothly when you hire a lawyer. You will be empowered to fight for your future success by humbly turning over your financial records. In addition, a lawyer will answer questions throughout the process so that you’re never left feeling like you don’t understand what’s going on.
The stipulations surrounding bankruptcy will help you determine if it is your best option. Be ready to answer questions honestly and provide records on your financials and creditors.
For assistance with the bankruptcy process, contact Miles & Hatcher, LLP. We can help you determine the best time to file for bankruptcy and take steps to get the process started. Call to schedule a complimentary meeting: (909) 481-4080.