Avoid These Common Bankruptcy Mistakes
Even just the thought of maybe filing for bankruptcy protection can create a lot of fear and anxiety about the future. Unfortunately, too many people let their fears get the better of them and make the kinds of mistakes that get bankruptcy cases dismissed, or worse.
By talking to a bankruptcy attorney before doing anything that might cost you big-time later, you can avoid these common mistakes:
- Don't try to handle your bankruptcy without legal help. Bankruptcy is a more complicated area of the law than you might think — especially if making the most of this opportunity is the goal for you.
- Don't sell assets or borrow against your equity or retirement funds just to fall a little less behind each month — not until you've talked to an attorney about your financial situation and debt relief options.
- Don't begin paying off certain creditors, including family members before you discuss your bankruptcy options. Also avoid other major financial transactions, ownership changes or transfers of assets that have significant value.
- Don't lie in any of your bankruptcy filings or to the bankruptcy trustee overseeing your case. This is one of the worst mistakes you can make, as it can not only cause you to lose assets and have your bankruptcy case dismissed — it may also lead to criminal charges being filed against you.
"This Is All We Do and We Do It Well."
Minneapolis-St. Paul: 651-968-8096 / Statewide Toll-Free: 888-366-0827
At Prescott & Pearson, P.A., our attorneys have focused solely on helping Minnesota families and small businesses get a fresh start through the bankruptcy process since 1975. We're confident that we can help you too — even if it turns out that bankruptcy isn't the right solution for your needs.
To learn more about your debt relief options, including Chapter 13 and Chapter 7 bankruptcy — don't hesitate to call or contact our lawyers in the Twin Cities area for a free consultation.
