Bankruptcy Mistakes to Avoid

When people are in financial trouble, they often get creative in trying to solve their problems. After all, nobody WANTS to file bankruptcy and most people are willing to do whatever is necessary to avoid it. Sometimes, this can just dig the hole deeper. The best time to consult with a bankruptcy attorney is when you are struggling to pay your bills and having a hard time staying afloat.

In my next several posts, I will cover some common mistakes I see clients make before they make their appointment with me.

Mistake #1: Incurring More Debt Before Filing for Bankruptcy

If a potential bankruptcy filer uses his credit card or takes cash advances, in anticipation of filing for bankruptcy, the potential bankruptcy filer may be committing fraud. Further, credit card companies monitor its users for “abuse” and can object in the debtor’s bankruptcy proceeding. This will almost certainly mean additional attorney fees and worse yet, non-discharge of your debt.

If you are overwhelmed, consult with a bankruptcy attorney who can offer better solutions to the problem rather than using a credit card as a band-aid.