Common Bankruptcy Mistakes

Experienced Bankruptcy Lawyer in Richmond

It goes without saying that bankruptcy is a big deal. And there are a number of classic bankruptcy blunders that can make the process of bankruptcy far more difficult and protracted than it needs to be. In order to minimize the damage done, be sure to avoid these classic mistakes:

  • Paying off debts with credit: When trying to pay off debts, some opt to pay it off using a credit card. However, this doesn’t do anything to eliminate your debt, it just relocates it. In some cases, this can be considered fraud and you could leave yourself open to criminal charges.
  • Liquidating all or most of your assets: A common knee-jerk reaction to major debts is to begin converting major assets such as vehicles, homes, retirement savings plans, etc. for cash. Depending on the debt and the assets in question, liquidation could be your best option. However, don’t sell your grandmother’s wedding ring or empty out your retirement savings until you have consulted an experienced, qualified legal professional.
  • Providing false information about your income: When you file for bankruptcy, you aren’t immediately off the hook. You will still be required to pay off some of your debt. This amount will depend on your income. Providing a smaller number may initially save you money, but your bankruptcy trustee’s assessment of your financial records will reveal your actual income. If you are found to have supplied false information, you may be hit with higher payments than you would have otherwise been.
  • Presuming that bankruptcy gets you out of secured debt: There’s no getting out of secured debts, like a mortgage, car payment, student loans. Alimony or child support payments are also locked in, even after bankruptcy.
  • Trying to file bankruptcy without having filed your tax returns: Just don’t do it. It doesn’t work. If you are allowed to begin the process without them, it will be a roadblock at some point during the process and create significant delays.

There are many more ways to botch a bankruptcy. If you have incurred more debt than you can pay and are considering filing for bankruptcy, our experienced Richmond bankruptcy attorney. Our team at Bruce W. White, P.C. is here to serve you and help you navigate the process with as much ease as possible.

Call us today at (804) 655-0502 or contact us to receive a free consultation.