7 mistakes to avoid before filing a bankruptcy case & Why!
- Waiting too long to get advice while your debts get larger.
- Bankruptcy protects assets!
- Waiting too long makes things worse – reduces options & you get deeper in debt.
- Skipping a house payment to pay other smaller bills.
- Making 2 house payments next month will be difficult.
- Getting a Title Loan or Check Advance for any reason.
- This is always a bad idea and a sign you are in deep trouble.
- Getting another loan to pay an existing loan.
- Usually just getting deeper and deeper in debt.
- Stay out of the Deep Weed$.
- Trusting someone else to pay your bills without checking to make sure the bills are paid.
- Hmmmmm…. Where did the money go?
- Using 401K or IRA funds to pay debts.
- Many times these funds can be protected from creditors and preserved for retirement.
- Simply hope that things will get better without making a plan to improve your financial life.
- A plan is necessary to improve anything. Make a plan.
7 Bankruptcy Myths
- I can only keep one old car if I file for bankruptcy protection: Wrong
- They can’t take my truck if I need it to get to work: Wrong
- Creditors will usually work out a payment plan you can afford: Wrong
- You can only file for bankruptcy once: Wrong
- I can’t file a bankruptcy case if I owe taxes or child support: Wrong
- I don’t have to list all my debts in my bankruptcy petition: Wrong
- If I file a bankruptcy case, I will lose my house: Maybe – It depends.
Bankruptcy Do’s and Don’ts
If you are in financial trouble and may need to file for bankruptcy protection, you need to read this.
- Hide assets or transfer property.
- Get a Title Loan or Check Advance.
- Call an 800 # you saw on TV.
- Run up your credit cards.
- Get another loan you cannot afford.
- Take advice from people that are always broke.
- Send money to a voice on the phone that promises to help.
- Pay debts with 401K funds.
- DELAY getting good advice about your problem ASAP.
- Learn your options to improve your situation.
- Get professional advice from a local attorney in person.
- Make a plan to build a better life for you and your family.