Mistakes To Avoid Before Filing For Bankruptcy

Bankruptcy is there to help you, but there are things you can do that may end up causing you to be worse off after filing your bankruptcy. Before you make any financial decisions or changes and think you will be filing for bankruptcy, consult a bankruptcy lawyer to see what your options are and what you should be doing. You could end up making mistakes and not even know it. Read on for a few of these mistakes to avoid.

Paying Extra On Your Debts

Spending every last dime trying to pay down your debts is not going to help you. You're planning on filing these debts as a part of your bankruptcy, so don't pay too much money out on these debts. Paying a little extra isn't going to do anything except take more money out of your pocket. You can use that extra money to pay for your bankruptcy. Pay the minimum amount on your bills (if you still can) up until you file for bankruptcy. Don't pay any extra.

Continuing To Use Credit Cards

If you are continuing to use your credit cards, you may end up responsible for the amount you've spent. This is especially true if you've used those credit cards within the last few months or have used it right after filing for bankruptcy. The bankruptcy trustee may also require that you return anything that you purchased with the credit cards in order to help pay back the debt owed to the credit card company. If you have credit cards, don't use them any longer.

Hiding Your Assets

You can't hide your assets by "gifting" them to your family or friends. Don't attempt to hide your assets because if you get caught, you could end up in hot water. Be honest about your assets and what you have available to you. If you have legitimately been selling your belongings, and show that you have been trying to pay your debts with the money, this needs to be disclosed to the trustee in your bankruptcy filing.

Falsifying Any Information

If you are falsifying any information at all such as assets (see above), financial records, or employment information, you could end up in hot water for this as well. Be honest with all of your information, as lying is only going to make things worse for you. It can lead to your bankruptcy being thrown out completely and you not being able to file for bankruptcy for at least another 6 months.

If you are planning on filing for bankruptcy, be sure not to avoid the mistakes listed above. Talk to your attorney about your bankruptcy and follow the advice of your attorney to ensure a smooth process.