Three Mistakes to Avoid before You File for Bankruptcy

Bankruptcy can be complicated, but for many, it is the best option available for improving a desperate financial situation. Bankruptcy can improve both your short and long-term financial situation. Immediately, filing puts an end to the creditor harassment you like face on a daily basis. Over the long haul you will be able to rebuild your financial standing and eventually you will have all of the same financial opportunities as those who never filed for bankruptcy.

One of the most important things to understand about bankruptcy is that it is a process. The steps you take leading up to and during your bankruptcy can drastically affect your long-term financial outlook. This is why it is so important to work with an experienced bankruptcy lawyer and avoid these common pre-bankruptcy mistakes.

Depleting Your Savings to Avoid Filing

For some people, the idea of filing for bankruptcy can be a challenge. Some people choose to postpone bankruptcy and dip into their savings or retirement accounts to avoid filing. They are embarrassed or assume they can handle their situation on their own. Unfortunately, this can create worse issues for them down the road. The sooner you take action the easier it is to get things back on track.

Dishonesty or Incomplete Information

When it comes to financial struggles, honesty is the best policy. There are instances in which creditors will work with you if you are direct about your financial struggles. Hiding from your problems or lying about your inability to pay only makes things tougher for you. And when the time comes to file, you are legally required to be honest and complete with the information you provide.

Acting without Research

Bankruptcy can be a complicated process. You have the option of filing on your own, but it is highly inadvisable. Mistakes in your paperwork can result in your case being dismissed, leaving you in an even more desperate situation. It is also important to research your options before choosing your attorney. It is important to work with a firm familiar with bankruptcy law and takes the time to understand the specifics of your situation.

If you would like to learn more about bankruptcy or you are ready to schedule a bankruptcy lawyer consultation, contact the Law Offices of Robert M. Geller at 813.254.5696.