Filing for bankruptcy may be your only option if you are unable to meet your financial obligations. Talking with an attorney can help you to decide if this is right choice, and what type of bankruptcy would be in your best interest.
What You Shouldn’t Do When Filing for Bankruptcy
While there are things you should do that can make the situation easier to handle, there are also things you shouldn’t do. Otherwise, you could end up making the situation much worse than necessary.
The following are three things you shouldn’t do when filing for bankruptcy:
- Make big purchases before or after filing – Don’t take on another big loan, don’t run up credit card balances before filing, and don’t take out cash advances on a credit card.
- Live outside your means – Living outside your means may have been what got you into this situation in the first place. Establish a budget you can afford and stick to it.
- Hide assets – Transferring property or omitting items from your bankruptcy paperwork won’t help you. If you’re intent on keeping certain assets, ask a lawyer if it’s possible.
It’s easy to feel like you are alone when it comes to bankruptcy. But more and more people are finding it can be a positive way to get out of debt.
Secure Legal Help When Filing for Bankruptcy
According to the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) 2011 Report, of all non-business bankruptcies filed in 2011, 70 percent were under Chapter 7, one-tenth of one percent were under Chapter 11 and 30 percent were under Chapter 13. An increase in Chapter 13 filings of 28 percent was seen from 2010 to 2011.
To learn which type of bankruptcy is right for you – whether Chapter 7 or Chapter 13 – consult a bankruptcy attorney at Warren & Migliaccio. Order our FREE bankruptcy guide and call us at 888-584-9614 to discuss what you should and should not do before, during, and after filing for bankruptcy.