4 Mistakes That Can Damage Your Bankruptcy Case
Bankruptcy may be the solution you have been waiting for if you have found yourself in a place where you are struggling to keep up with your debt. After all, bankruptcy can help you gain a fresh financial start and enable you to begin putting your finances in a better position. And despite what you may have heard previously, the bulk of people who are pursuing bankruptcy aren’t doing so because of poor financial spending but instead because of financial hardship, much of which results from medical bills which occur more often than they should even with insurance. But while bankruptcy can be helpful in certain circumstances, that doesn’t mean it’s right for every situation and the decision of whether or not to file for bankruptcy is a major one. But even if you are simply considering filing for bankruptcy, it is important to understand that even what seems like minor actions could become mistakes that hurt your bankruptcy case. A few of the most common mistakes are discussed below.
Moving Assets Out of Your Name
It is extremely important that you avoid transferring assets that are currently in your name to someone else anytime in the weeks and months (and ideally the year) prior to filing for bankruptcy. Similarly, when you are thinking about the assets to disclose, it is imperative that you think of everything your name is attached to. That could include something you financed in your name with an ex who took the property and haven’t seen in years or could include the vehicle your child drives at a college out of state. Full disclosure is essential as the last thing that you want to appear to do is be hiding or reducing your amount of assets which can be considered bankruptcy fraud and even carry legal penalties.
Paying Off Debt You Owe to a Loved One
It may also be tempting to pay off a debt you owe to your family member prior to filing for bankruptcy. However, you should know that the law doesn’t see your family member as your family member but instead views this person as another one of your creditors. That means that treating this person differently than your other creditors can lead to implications neither you nor your loved one wants to deal with after you begin the bankruptcy process.
Waiting Too Long
We totally understand the initial hesitation to proceed with a bankruptcy case. However, the reality is that continuing to allow bills to become past due will only allow them to become delinquent which can eventually lead to more accounts in collections. Filing your case earlier rather than later can help you in the long run once you realize you are over your head in debt.
Not Obtaining the Right Legal Help
Bankruptcy laws are complicated and it is easier than it seems to make a mistake that could affect the outcome of yours. Therefore, it is almost always in your best interest to work with an experienced bankruptcy legal team that you can depend on for both zealous representation and advocacy. As the Plantation bankruptcy attorneys at Nowack & Olson, PLLC, we have successfully helped thousands of residents of the Sunshine State become free from continuously mounting debt and we welcome the opportunity to assist you. Contact us today to schedule a free consultation and receive individualized advice on how to maximize your chances of a favorable decision.