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