You may think you have it all figured out. You are completely broke and you highly doubt you can pay off your debts. Now, you are considering filing for bankruptcy. Although this may seem like the best option for you, giving it a more thorough consideration and a great deal of research might give you a better idea of what you are actually getting yourself into. Here are five general Bankruptcy Mistakes you absolutely should not commit when filing.
First of all, it is a definite mistake to file for bankruptcy when you have not considered other options. Think it through. Bankruptcy is a life altering decision that could affect you and your family. This is not something you should see as an easy way out. Some individuals believe that bankruptcy is the key thing that would save them from financial burden. This is a very bad connotation because when you file for bankruptcy, you would have to pay for your debts still. You might have to give up important properties and your possessions just so you can cover as much debt as you can.
San Jose Bankruptcy Lawyer, Personal Bankruptcy Lawyers, Bronx Bankruptcy Lawyer,
In addition to this, declaring bankruptcy means that you would have a bad credit record for at least ten years. You would become a credit risk for banks and financial institutions so your borrowing power would be very limited, if not none at all.
The second thing to remember is when you are filing for bankruptcy, it is a no-no to lie, defraud or manipulate the law just so you can get out of your debt. There are laws, such as only being allowed to file for bankruptcy once every six years, to protect creditors and banks from people who would easily use this to get away from paying their dues and interests.
People also make the common mistake of borrowing money to pay for current and outstanding debts. You might even consider borrowing from your retirement savings but this is a very grave mistake. You are not only taking money saved for your future when you can no longer work, you are also adding more financial burden to your already long list of responsibilities.
It would also be a serious mistake to go about filing for bankruptcy without consulting a financial expert or a bankruptcy attorney. These professionals are equipped with proper knowledge and years of experience so they can really help you and give you good advice. If you think you cannot afford one, go to your local non profit organizations who offer professional services related to filing for bankruptcy.
Lastly, do not make the mistake of dragging the names of family and loved ones to your financial issues. Borrowing money from family, friends and relatives might result to more harm than good. If for example you pay them with the money you borrowed from other banks, they might be sued and even asked to return the funds that you have used to pay. This can put your relationships in jeopardy and even break good relations with your friends and colleagues.
Bankruptcy can make you confused and panicky. This is why you need to understand what you are getting into, especially the laws that cover your situation to avoid Bankruptcy Mistakes.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Chapter 7 Bankruptcy Attorney
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment