Filing for bankruptcy is a complicated and, at times, emotionally stressful matter. What can be even more trying during such distressful times, however, can be making some common bankruptcy mistakes that can end up costing you more money or causing your to lose some of your precious assets. In these circumstances, it’s important to work with our skilled, trusted bankruptcy lawyers who can efficiently guide you through the process – at minimal cost and with minimal mistakes.
Here are some of the most common bankruptcy mistakes and pitfalls:
- Filing for bankruptcy when you are owed a sizable tax refund or monies from another private party, as the court will assume the owed monies and distribute it to your creditors.
- Filing for bankruptcy when you are expecting to claim an inheritance within the upcoming year, as this also can be assumed by the court and distributed to creditors.
- Incurring additional, significant debt once you have considered filing for bankruptcy, as this could be considered fraud, in which case you will still have to pay this debt and may be liable for criminal charges.
- Filing for bankruptcy when you have more than about $100 in your bank account (or in other liquid assets) and/or if you are planning on selling any real estate within the upcoming year, as any of these assets – or profits from these assets – can also be assumed by the court and paid to creditors.
If you are considering filing for bankruptcy, our experienced bankruptcy attorneys strongly encourage you to consult with us before taking any definitive steps, as we can help you navigate through the process in order to achieve the best possible outcomes to your situation.