Seven Mistakes That Could Derail Your Bankruptcy
Bankruptcy can offer you a path to a much-needed financial fresh start. However, certain mistakes can jeopardize your ability to discharge or restructure your debt. Knowing which mistakes to avoid is absolutely essential. At Robinson Salyers, PLLC, with locations in Shelbyville and Frankfort, Kentucky, our attorneys provide comprehensive advice designed to help our clients avoid damaging mistakes.
Debt Elimination Attorneys Helping You Avoid Costly Errors
- Don’t borrow money. You cannot discharge any debt that you incur after filing for bankruptcy. Bankruptcy offers you the chance to start over, debt free. By taking on new debt that you will not be able to discharge, you run the risk of wasting your chance to start with a clean slate.
- Don’t sell your 401(k). The Bankruptcy Code protects retirement accounts from liquidation in bankruptcy proceedings. If you use your retirement funds to pay down your debts, you may be needlessly giving up money that can support you in your retirement years.
- Don’t pay family members back. The law prohibits you from favoring family members over other creditors by paying back debts you owe to them. If the bankruptcy trustee discovers that you have paid a family member, the trustee can take that money back.
- Don’t retitle your property. Transferring property out of your name can be considered fraud, and the bankruptcy trustee can undo any transfers that you have made within two years of filing for bankruptcy protection.
- Don’t skip your court appearance. Failing to appear in court when a creditor has a lawsuit against you will not make the case go away.
- Don’t take on a second mortgage. If you have assets you want to protect, such as a house, the Bankruptcy Code contains provisions that will allow you to do that. Don’t put your house on the line by using a second mortgage to pay off your credit cards.
- Don’t withhold information from your lawyer. Our lawyers need all of your information before determining a strategy for eliminating your debt. If you do not truthfully disclose all of your assets and debts, your bankruptcy case may be denied — and you may lose your chance to start over.
Contact Robinson Salyers, PLLC, For A Consultation
The best way to protect yourself from mistakes is to contact an attorney before taking any other steps. Contact our law firm before you do something that can have adverse consequences down the road. Schedule a consultation by calling 502-257-5417 or sending an email.