Time To File For Bankruptcy? 3 Things You Should Avoid During The Process

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If you've reached the end of your financial rope and you can't see any way out, it's time to speak to a bankruptcy lawyer. Filing for bankruptcy will allow you to get out from under the debt you're drowning in. It will also allow you to get the fresh start you need so you can start building a firm financial foundation. If you're going to file for bankruptcy, here are three things you shouldn't do during the process.

Don't File Without an Attorney

If you're going to file for bankruptcy, the last thing you want to do is file without an attorney. The federal bankruptcy laws are confusing, and if you make a mistake, it could end up costing you dearly. For one thing, you could end up having your entire case dismissed, which means you'll need to file all over again. For another thing, you could forget to list some of your debts, which means you'll be left owing those even if your bankruptcy is discharged. A bankruptcy attorney will make sure that the process is done correctly and that you're not left owing debts that should have been discharged.

Don't Make New Credit Purchases

If you're going to be filing for bankruptcy soon, don't use this time to make new credit purchases. If creditors even suspect that you purchased something on credit, knowing that you were going to file for bankruptcy, they can request that you be required to honor that obligation. Unfortunately, if the judge agrees with them, you'll be required to continue paying that debt until it's satisfied. To prevent being left with debt after your bankruptcy is discharged, avoid making new credit purchases once you know you're in financial crisis.

Don't Give Your Assets Away

If you've decided that bankruptcy is your only way out from under your debt, don't start giving your assets away. It can be tempting to gift your assets to friends and family members so that you don't have to liquidate them for your bankruptcy. However, doing so could get you into more trouble than it's worth. In fact, it could get you into legal trouble if your gifting is discovered. If you're concerned about losing your assets, talk to a bankruptcy attorney about the different types of bankruptcy chapters that are available. Not all of them require you to liquidate your assets. You may be able to keep your property, and still receive bankruptcy protection.

If it's time to file for bankruptcy, visit a site like http://timgeorgelaw.com and contact an attorney near you.