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Bankruptcy Q&A

7 mistakes to avoid before filing a bankruptcy case & Why!

  1. 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.
  2. Skipping a house payment to pay other smaller bills.
    • Making 2 house payments next month will be difficult.
  3. Getting a Title Loan or Check Advance for any reason.
    • This is always a bad idea and a sign you are in deep trouble.
  4. Getting another loan to pay an existing loan.
    • Usually just getting deeper and deeper in debt.
    • Stay out of the Deep Weed$.
  5. Trusting someone else to pay your bills without checking to make sure the bills are paid.
    • Hmmmmm…. Where did the money go?
  6. Using 401K or IRA funds to pay debts.
    • Many times these funds can be protected from creditors and preserved for retirement.
  7. 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

  1. I can only keep one old car if I file for bankruptcy protection:  Wrong
  2. They can’t take my truck if I need it to get to work: Wrong
  3. Creditors will usually work out a payment plan you can afford: Wrong
  4. You can only file for bankruptcy once: Wrong
  5. I can’t file a bankruptcy case if I owe taxes or child support: Wrong
  6. I don’t have to list all my debts in my bankruptcy petition: Wrong
  7. 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.

DO NOT:

  • 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.

Do:

  • 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.