Filing bankruptcy can be a scary thought. But, if you are in need of a fresh financial start, you want to be sure you go about it the right way. That is because a mistake in bankruptcy can make it difficult to achieve your fresh start. We have previously discussed common mistakes and things that will help you in bankruptcy. Here are more things to avoid that will help you when filing bankruptcy:
Things to Avoid When Filing Bankruptcy
- Choosing a random attorney – do not assume that every attorney is the same. Take time to do research and “shop around.” Many attorneys do not get specialized training.
- Do not believe everything you read online – laws change and are updated, so the website you’re consulting may be out of date, even if the copyright information has been updated.
- Do not transfer any of your property into someone else’s name to avoid losing it in bankruptcy – this is a federal offense that could result in you losing your discharge and property or more. This includes:
- Transferring your house to your kids, while keeping a “life estate” to avoid probate.
- Using your children’s names on real estate for estate planning.
- Transferring your vehicle to a friend so you won’t lose it in bankruptcy.
- Do not rely on price – it is important to go with an attorney that is knowledgeable, experienced and someone that you feel comfortable working with. You often get what you pay for, so keep that in mind when meeting with potential attorneys.
Things You Should Do
- Take time to research – make sure that you treat your financial difficulties seriously. It never hurts to prepare yourself to meet with an attorney, in fact, most consultations are free. It will help you prepare questions and be more aware of the bankruptcy process.
- Keep in mind that your situation is unique – It may be tempting to compare your situation to someone else, but there are many variables that make every case different.
- Seek legal advice before making any large transaction.
- Remember that you are not a failure! You cannot consider yourself a failure. In fact, you are reading this, so you are already looking into how to take back control. If you need help and advice, we are here to help!
Need More Information About Filing Bankruptcy?
If you are thinking about filing bankruptcy, you need to speak with an attorney before making any changes to your financial situation. Most consultations are free and can save you thousands of dollars. You owe yourself the chance at a fresh start! So, ask yourself: Do I want a real clean slate and a fresh start, including good credit?