4 Bankruptcy Mistakes to Avoid

: Reese Baker & Associates

  Filed under: Filing bankruptcy

mistakeIf you are one of the millions of Americans who feel financially distressed and eventually decide enough is enough, bankruptcy can be a good way to start fresh and put the past behind you. However, haphazardly approaching the process can leave you in worse shape than when you started. Let’s take a look at some of the major mistakes people commonly make when going through the Texas bankruptcy process:

  • Don’t hide or cover up. The majority of people who file for bankruptcy do qualify. As a result, there is no need to hide assets, lie about details, or leave out information. If caught, your case could be dismissed and bar you from future filing. In court, honesty is always the best policy.
  • Don’t use credit. It’s important to stop using credit in the months leading up to filing a bankruptcy claim. Anything you purchase on credit within the 90 days leading up to your filing could significantly delay your case. You also may be required to pay the money back.
  • Don’t transfer ownership. While you may think you are protecting your assets by transferring ownership to a friend or relative, it’s actually considered fraud in the court of law. Do not make transfers of any kind, as they can result in a dismissal of your case.
  • Don’t speak to your creditors. After filing your case, avoid speaking directly to your creditors. At this point, your attorney should handle all communications.

While bankruptcy can provide the freedom you need to move on in your life, it’s important to remember these don’ts along the way.