Filing For Bankruptcy Don'ts

Texas bankruptcy laws are quite forgiving compared to some states. One example is the Homestead exemption law that allows for homeowners to protect homes of an unlimited value, whereas other states may place a value cap on which homes can be exempt from liquidation. However, in order to take advantage of some of the more flexible bankruptcy laws there are some things you should take caution to avoid.

Know What To Avoid

Many people think that filing for bankruptcy is an easy decision. In fact, bankruptcy should be a well thought out decision and one that has been made only after other options have been considered. The problem with filing without consideration is that costly mistakes are made, many of which could jeopardize the outcome of your case.

• Don’t keep spending. Debts that are accumulated within 90 to 180 days before filing for bankruptcy may not be accepted into the case or even viewed as fraudulent.
• Don’t change your finances. Acquiring more income or paying off debts before filing could disqualify you from being eligible to file.
• Don’t move your assets. Selling, giving away or hiding assets before filing for bankruptcy can be viewed as fraudulent, or seriously complicate your case.
• Don’t wait too long. This is especially important if you are trying to save your home from foreclosure, be sure to meet with a bankruptcy attorney to review your options and timeline for resolving your debts.