July 13, 2024

What not to do before filing for bankruptcy


What not to do before filing for bankruptcy. When you feel like you’re drowning in debt, it’s natural to look for ways to free yourself from that annoying and exasperating burden. One of the most effective alternatives for getting rid of your debt is certainly bankruptcy. This process, contrary to popular belief, will bring you several benefits that will help you regain control of your economic situation, the most important being the discharge of most of your debt, allowing you to enjoy a fresh financial start.

Now, if you want your bankruptcy process to be positive and change your life for the better, it is best to be aware of the things you should NOT do before filing.

On the other hand, keep in mind that the best way to avoid mistakes before and during your bankruptcy filing is to work with a Los Angeles bankruptcy lawyer who has the knowledge to advise you every step of the way.

If you are looking for a bankruptcy attorney you can trust, KT Bankruptcy Lawyer may be an excellent alternative. This long-standing law firm has helped hundreds of Californians over the years regain control of their finances through the blessings that bankruptcy has to offer. If you want to know how they can help you, visit their website or contact them for a free consultation.

Don’t rush into bankruptcy

Bankruptcy will get you out of debt, but it will also affect your credit report for years to come. Therefore, you should keep bankruptcy as your ace up your sleeve if all other alternatives fail.

On the other hand, if you’ve filed bankruptcy before, you should be aware that you will have to wait a while to get another debt discharge through this process. To be exact, you’ll need to wait 8 years after a Chapter 7 discharge, or 6 years after a Chapter 13 filing.

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But don’t wait until It’s too late

Of course, if your financial situation warrants it, it is best to proceed with your bankruptcy filing as quickly as possible.

Doing this is a good idea if you have been placed in wage garnishment, if one of your creditors has filed a lawsuit against you, or if you want to save your home from foreclosure or your car from repossession.

Don’t continue to use credit

If you’re thinking about shopping with your credit card before filing bankruptcy, you might want to think again. Remember that all your recent financial activity will be reviewed, and too many credit transactions could have a negative implication on your filing. In the worst-case scenario, this could cause your bankruptcy to be considered fraudulent.

Don’t provide inaccurate or dishonest information

Bankruptcy paperwork requires you to disclose all your financial information, including specific information about your assets, property, income, expenses, etc. If you purposely provide incorrect information, for example by not disclosing a relevant asset such as a car, you could face fines of up to $250,000 and even criminal charges that could land you in jail for up to 20 years.

On the other hand, if you don’t file all the paperwork properly, the bankruptcy court will likely dismiss your case completely.

Don’t move your assets

In any bankruptcy filing, you will be at risk of having to sell some of your assets to pay your creditors. Therefore, many people may be tempted to sell or transfer some of their assets to secure them or hide them from the process.

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This is a very bad idea. If the bankruptcy court finds out (as they probably will) chances are your bankruptcy will be labeled as fraudulent and you will face criminal charges. It’s just not worth it.

Don’t do it alone, work with a bankruptcy attorney

One of the most common mistakes many people make when filing for bankruptcy is to do it on their own. The reality is that the process can be very complicated for those who are unfamiliar with it. Thus, the best thing you can do is work with a bankruptcy attorney who can help you navigate through the process, so you can get the fresh financial start you so desperately need.

When looking for an attorney in the Los Angeles area, remember that KT Bankruptcy Lawyer is always available to you and offers free consultations. It won’t hurt to give them a call, you have nothing to lose.

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