Good people find themselves deep in debt for a lot of reasons: Job loss, health issues, and divorce are common reasons for debt problems. We see people try all kinds of ways to try to stay ahead. Here are some things that you should NEVER do:
Do not take out a second home mortgage to pay debts. This transfers unsecured debts to secured debt attached to your home. If you cannot make payments your creditor will foreclose on your home. It is possible to protect your home in bankruptcy.
Do not pay debts using your retirement savings account. Retirement accounts are protected through a bankruptcy filing.
Do not max out your credit cards to stay afloat. Recently incurred charges may not be able to be discharged through a bankruptcy filing.
Do not transfer your home to another person to avoid having a lien placed on your property. Call us first to discuss any such transfers.
Bankruptcy is not the end of the world. There are hundreds of thousands of bankruptcy filings in the United States each and every year.
Here are some thoughts of things to do when filing for bankruptcy.
Do consider this decision very carefully. Under Chapter 7 you will only be able to receive a discharge every 8 years. There are other options if you have filed within the last 8 years and are struggling. Contact us for a free consultation.
Do follow the advice of your attorney. At our office we have over 55 years of combined experience and will be able to guide you to make sure your bankruptcy is as painless as possible.
Do be honest in all of your answers on the petition. Be sure to list all assets and not leave anything out. We can usually protect your assets with full disclosure and some pre-planning.
Do be sure to list all of your creditors on your petition.
Do close any bank accounts with which you have credit lines or credit cards. This will prevent the account from being seized by the creditor.
Bankruptcy is a serious decision and should not be taken lightly. Contact our office for your free consultation to discuss your individual situation to see if bankruptcy is the right decision for you.