People looking for debt relief often turn to the bankruptcy process. While the system is designed to relieve financial insolvency, some people end up worse off or without the help they are looking for due to some costly mistakes. Here are some of the most common bankruptcy mistakes:
Filing alone– many people often assume they cannot afford a bankruptcy lawyer to handle their case. This is a misconception that can cost you the successful outcome of your case. The reason is that an experienced Dallas bankruptcy lawyer knows the law and how to help you get the most out of your case, including easy debt relief and asset protection.
Cheating the system– it isn’t uncommon for people to make changes to their debts, income or assets in the months prior to filing for bankruptcy. In many cases, the court can view these changes as fraudulent and may dismiss your case. The general rule of thumb is to not make any unnecessary credit purchases, quit a job/lower your income, or sell/transfer assets within the 90 days before your case filing.
Waiting too long– the timeline for filing for bankruptcy is different for everyone. While it is true that bankruptcy should not be your first line of debt defense, waiting too long can put your assets at risk of liquidation and your credit score in harm’s way.