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BANKRUPTCY MISTAKES TO AVOID by Sanas Foods. Bankruptcy Mistakes to Avoid #1. Waiting Too Long It is human nature to put off unpleasant events. Filing bankruptcy does not have to be "unpleasant." Wage garnishment, foreclosure, and repossession can all be stopped by filing bankruptcy before creditors begin these collection actions. And as was so pointedly shown in the cases of some clients mentioned in the scenarios section of the main bankruptcy page, postponing bankruptcy in an attempt to do the right thing is often the absolute worst thing for your family. In our cases, all postponing accomplished was insure that they lost everything THEN filed, and if they had acted more quickly, they could have kept EVERYTHING! Bankruptcy Mistakes to Avoid #2. Getting a 2nd Mortgage Instead of Filing Bankruptcy Many clients try to put off inevitable bankruptcy by obtaining a second mortgage to pay off their unsecured debts. If you cannot make your first and second mortgage payments, you can lose your home. It is not wise to risk your home for the benefit of creditors. Bankruptcy Mistakes to Avoid #3. Depleting IRA and 401K Plans to Pay Creditors In most cases, your IRA and 401K plans, as well as other tax qualified plans, are exempt assets. You can file bankruptcy and still keep all of your retirement savings to help reestablish your normal lifestyle after bankruptcy. Bankruptcy Mistakes to Avoid #4. Filing When You Have a Substantial Tax Refund Pending The exemption for tax refunds is limited, and an ill-timed bankruptcy may jeopardize your refund. You should discuss any expected refunds with us before filing. Bankruptcy Mistakes to Avoid #5. Reaffirming Burdensome Debt Reaffirming (keeping) loans trhough bankruptcy will make it difficult or impossible for you to recover financially. Don't keep credit cards with significant balances. Banks will send you new credit cards after your bankruptcy is discharged. Bankruptcy Mistakes to Avoid #6. Failing to List All Creditors A creditor you forgot to list on your bankruptcy petition may not be discharged. You should list all creditors, even if intend to repay the creditor. You must also include debts owed to family members and other insiders. Bankruptcy Mistakes to Avoid #7. Large Credit Usage Shortly Before Filing Bankruptcy You must tell your attorney or peparer if you have taken significant cash advances, made balance transfers, or made other large purchases within the prevoius three (3) months. Bankruptcy Mistakes to Avoid #8. Paying Back Loans to Family Members Before Filing Bankruptcy Repaying loans to family members (or insiders) within one year of filing bankruptcy should be avoided. The Trustee can sue your family members to recover sums paid to them within the past year. Bankruptcy Mistakes to Avoid #9. Transferring Non-Exempt Assets To Others Assets transferred in anticipation of filing bankruptcy may be recovered by the Trustee as a fraudulent conveyance. Giving away money or other assets to your children, parents, or siblings will not protect the assets from the bankruptcy trustee, and such transfers may jeopardize your bankruptcy discharge. Bankruptcy Mistakes to Avoid #10. Ignoring Letters From the Court and Your Attorney Any notice or letter you receive either from the Bankruptcy Court or your attorney is important. Failure to respond to a communication may have adverse consequences.Another tip from Sanas Foods. BANKRUPTCY MISTAKES TO AVOID .PLEASE CLICK HERE FOR FURTHER INFO..
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