Articles

5 Costly Mistakes People Make When Filing For Bankruptcy

by John Fostar Media Releation
Somebody once said, “debts can make you lose your sanity.” Well, it’s not like people go into asylums, but a part of this saying is true. People do start behaving weirdly, even take the wrong decisions. Their ultimate aim is to get rid of debts. But how, that’s what matters. 

Bankruptcy is one way of bringing your financial life back to tracks. Though it is not always the right way, it can help you buy time to pay your debts and let those hounding creditors stay away from you for a while. A bankruptcy lawyer can help you decide whether bankruptcy is the right thing to do in your case. 

Many people decide to file for bankruptcy on their own. They want to save money. A worse idea, remarks a legal expert. In fact, it’s a bad time to think about saving money in hiring a lawyer when you are overloaded with debts. 

On the other hand, you must spend a little more and hire the best Prince George’s County bankruptcy attorney to tackle your “debt monster” in the most effective way. 

Here’s a brief on the common mistakes people make while filing for bankruptcy. To avoid these mistakes, it’s wise to hire a lawyer specializing in this field. 

Mistake # 1: 

People hide their assets or extra sources of income. If you are caught lying, your case can be dismissed and you may not be able to file in the future. So, please be honest with regard to your assets. 

Mistake #2:

People take new debts before they file for bankruptcy. A huge mistake, says a lawyer. This will wobble your finances further. Do not take any more debts. Also, stop using your credit card. This will help you sail smoothly through your bankruptcy procedure and manage your debts well. 

Mistake #3:


People transfer their assets to family members while filing for bankruptcy. This is an illegal move, informs a lawyer at a reputable Prince George’s County bankruptcy law firm. It can attract penalty or more legal trouble. 

Mistake #4:

People avoid filing in spite of knowing that this is the only way for them. Some simply wait and watch until their finances crumble. Others will do anything under the sun to avoid filing or even avoid hiring a lawyer. 

Many people are found to exhaust their 401-K account or IRA for paying their credit card debts. 

Do you know your 401-K account is protected by law from creditors? 

This means the credit card companies cannot touch the funds in this account, no matter how much debt you owe them. It’s disheartening to know that people use this protected fund to pay off their debts. If only they consulted a lawyer, they could have saved this money! 

Mistake #5:

People do not hire a bankruptcy attorney. They simply browse the internet, search for how to file for bankruptcy, and think they can do it on their own. 

If everybody searched the internet and learned from it, the world wouldn’t require lawyers, doctors, tutors, electricians, plumbers, designers, architects, and so on, right?

Moreover, a competent Prince George’s County bankruptcy attorney would help you prevent making the above mentioned mistakes. 

Resource Box:

Rnnlawmd.com helps you connect with the most competent Prince George’s County bankruptcy attorney in town. Visit the site to know more about this esteemed Prince George’s County bankruptcy law firm. 

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About John Fostar Advanced   Media Releation

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Joined APSense since, February 28th, 2013, From new jersy, United States.

Created on Sep 11th 2020 02:41. Viewed 321 times.

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