People do get broke. They do make financial mistakes. There is always a way to correct them and start afresh. However, people usually make a few mistakes before filing for bankruptcy.
If you intend to contact a personal bankruptcy attorney in Maryland, take a look at the following mistakes so that you avoid committing them.
1. Not mentioning a few ‘special’ creditors
You may feel overwhelmed when burdened by debts. This gush of emotions may make you keep a few ‘special’ creditors in the hiding or you may miss them accidentally. The law mandates you to list all your creditors when you file for bankruptcy, even if you intend not to pay them at present. In case you missed listing a creditor, the debt for that creditor will not be discharged.
In other words, it may fail to ease out your financial situation because there will still be debts lurking in the corner, troubling you.
2. Hiding assets
Have an additional bank account? Own a property at some far off place that was ‘gifted’ to you by somebody? Please mention it. Nobody is going to snatch away your assets from you.
Tempted to transfer a huge sum of money to a far-off relative before filing? Don’t! This is against the law.
Hiding assets can deeply hurt your case. In fact, it can attract fines and even prison terms because, under the law, this is bankruptcy fraud.
You are only inviting more trouble by doing such things.
3. Repaying a family member before filing
This might come as natural to some people, but can hurt their bankruptcy case. What might happen? Well, the court may ask the family member to pay back the money to the trustee!
So, you are unnecessarily inviting complication in your case and also paving the path for legal trouble for your family member. What if the family member refuses to repay? The court can sue them!
4. Shopping big on credit card just before filing
This is immature behavior. Do you know big purchases made just before filing may be declared as non-dischargeable? It’s like pulling yourselves out from one pit and falling into another. Please discontinue using the credit card at once when you realize you can’t repay.
5. Postponing too long to file for bankruptcy
Every time you think you will pay back the debts. Every time you are unable to. This goes on. Delinquent bills turn into collection accounts, which turn into wage garnishments. Don’t let debts transform into a monster in your life. As soon as it hits you that you can’t pay debts any longer, call a personal bankruptcy attorney in Maryland and revamp your financial life.