Bankruptcy is a complex process. It takes help from an experienced bankruptcy attorney to truly answer all of your bankruptcy questions, but there are several mistakes we recommend you avoid while beginning the process. Some common mistakes people make include:
Waiting too long.
Bankruptcy is a life-changing process, but many people do not realize that it has the potential to be a positive change in your life. By waiting to file for bankruptcy, you may make a bad situation worse. Repossession, foreclosure and harassing creditor calls can be stopped immediately after you file for bankruptcy.
Failing to hire a bankruptcy attorney.
Very few bankruptcy petitions filed without the help of a lawyer end up being approved by a judge. You need an attorney who understands how to compile all of the bankruptcy information you’ll need to account for your assets, debts and overall financial picture.
Failing to disclose all assets & creditors.
If you do not list a creditor on your bankruptcy petition, your debt may not be discharged. If you fail to disclose all of your assets, you could also lose your bankruptcy discharge, forcing you to begin the process over again.
Failing to provide documents.
You must provide documents like your bank statements, pay stubs and tax returns in order to file your bankruptcy petition and have a judge accept it.
Reaffirming debt.
A debt collector may coax you into agreeing to pay an unreasonable debt. Don’t do it! It’s never a good idea to reaffirm debt, especially during bankruptcy. Doing so could make it impossible to get out of debt for good.
Cashing in your IRA.
Don’t borrow from your IRA or get a retirement loan in order to pay off credit cards debt. It is better to address your debt problem and save your retirement so you can live comfortably when you retire.
If you have bankruptcy questions in Albuquerque, NM, contact Melwani Law at 505-323-5800 to schedule a free consultation.
Waiting for an inheritance.
If you inherit money within six months after filing bankruptcy, it is deemed part of the bankruptcy estate. Be sure to discuss any potential inheritances with your attorney.
If you need bankruptcy information in Albuquerque, New Mexico, the Albuquerque bankruptcy attorneys at Melwani Law, P.C. are here to answer all of your bankruptcy questions so you feel confident that you are making the right decision.
Begin your path to financial freedom today. Contact us to schedule a free evaluation at our Albuquerque bankruptcy law firm. We will provide you with the bankruptcy information you need to move forward.
