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Law Firm Says: Avoid These Mistakes In Bankruptcy

Are you filing for bankruptcy? You should always be cautious in every decision you make and every paper you fill out because a little flaw might be used against you and fail your case later on.


So it is very crucial to hire a law firm who has the necessary knowledge and extensive experience about bankruptcy. You should work it out with a bankruptcy attorney. One who does not only know the law by word but knows it by heart. One who can give you a glimpse of possible consequences if you choose a certain legal option.


Why don’t you take a look at these common bankruptcy mistakes that you should avoid committing:


  1. Reckless usage of your credit card and taking out cash advance before bankruptcy.

If you use your credit card recklessly because you believe that it’s going to be discharged anyway, you are in the wrong boat. The truth is, a debt cannot be discharged when incurred within 90 days before filing for bankruptcy. Therefore, you are obliged to pay that certain debt.


  1. Hiding properties or assets from your creditors.

When you file for bankruptcy, you can’t protect your home, car, jewelry, and money by moving them out under your name and transfer it to a family member.


Just so you know, a bankruptcy trustee is very keen with financial dealings. Avoid such attempt because they might reverse the transfer of such properties when they found out that you hide it intentionally and may even charge you with fraud. Moreover, there are exemptions in the bankruptcy law intended to protect your properties.


  1. Taking money out of your retirement savings account.

Don’t ever touch a penny in your retirement savings when you are considering bankruptcy. Why? Because later on, you might have to repay all the amount you withdraw with additional huge tax penalties. Moreover, this type of account is exempted in bankruptcy, which cannot be touched by your creditors.


  1. Keeping significant information from your bankruptcy lawyer.

Now, this is one thing you should never do because it can bring a domino effect of serious problems in your bankruptcy case. Concealing all significant details about your case might mislead your lawyer and the court and can cause chaos. After this, expect the worst such as losing your assets, dismissal of your case, criminal charges and withdrawal of your lawyer. So, provide every information you think would help because a law firm only cares for one thing–that is to win your case to the best of their ability.


  1. Ignoring pending lawsuits

When considering bankruptcy, it is still crucial to respond to any pending lawsuits and summons until your bankruptcy case is filed. Also, follow court orders. So make sure to protect your rights and properties beforehand until an authorized person from the court takes over.


Be always prepared and attentive before, during and even after your bankruptcy process. And you need the expertise of a bankruptcy law firm to achieve this. So better start finding a good one the moment you consider bankruptcy.


Looking for an experienced and honest bankruptcy law firm in Alexandria, VA? Visit Baneylaw, PC at 2121 Eisenhower Ave #200, Alexandria, VA 22314 or you may call 571-620-6715.


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