Go

Don't Get a Home Equity Loan:

In short, your home is not an ATM machine. Many people postpone or sidestep bankruptcy by turning their home into an ATM machine with a home equity loan. They use the money secured by a lien on their home to pay off medical or credit card debt. Later on, they end up losing their home when they cannot afford the repayments. When you don't pay your medical bills or credit card debt, you get harassed...that is usually it. However, when you trade in that unsecured debt for debt on your home, you turn your home into a loan that can be foreclosed on.

Don't Early Withdraw From Retirement:

In short, your retirement account is not an ATM machine. Many people postpone or sidestep bankruptcy by taking the retirement savings they have spent so much time accumulating and paying off credit cards, medical bills, or other unsecured debt. Why would anyone want to do this if they otherwise qualify for bankruptcy protection. If you qualify, such debts can be reduced or simply wiped away. Are paying credit card bills with outrageous interest or inflated medical bills worth postponing retirement or even forgetting about ever retiring?

Don't Reaffirm Burdensome Debt:

This one happens all of the time. A person reaffirms a loan or debt that they are otherwise completely free to disregard because of bankruptcy. Sometimes the reaffirmation is due to a perceived moral obligation. Other times, the person wants to keep a certain possession such as a car in which they owe much more than the value. Either way, the point of bankruptcy is to get a fresh financial start. Why handicap yourself when you could use that money to instead accumulate wealth.

Don't Wait Until Foreclosure or Repossession to File:

Some people wait until after they have already lost their home, their car, or worse....attempted for years and years to pay back ridiculous medical or credit card debt, before they file for bankruptcy. Foreclosure and repossessions can be avoided and unsecured debt such as medical bills and credit card bills eliminated. Why not file for bankruptcy today and keep what you have worked so hard for all these years?

Don't Omit any Creditors From Your Bankruptcy Filing:

Its simple....you can't get bankruptcy relief from a creditor you do not include in your bankruptcy paperwork. So why would you not include such a person or business? If you intend to repay the debt in the future, you can still do so...but shouldn't unnecessarily "tie" your hands.

Don't Fail to Attend your Hearing:

In most cases, you simply must attend one meeting and the judge will not even be there. However, if you do not attend (and bring a photo I.D. and Social Security Card), your case could be dismissed.

Don't Transfer Assets To Others to Remove Them From Bankruptcy:

Transferring assets to others to remove them from your upcoming bankruptcy can be problematic. Such assets can be recovered by the bankruptcy trustee and you could be in trouble if it is determined that you intended to deceive the trustee.

© 2011 Starks & Gonzales, P.C. is a debt relief agency that helps people file for bankruptcy pursuant to 11 U.S.C. sec. 528 under the Bankruptcy Code.  Unless otherwise indicated, attorneys listed in this web site are not certified by the Texas Board of Legal Specialization.