If you’re facing insurmountable debt and have made the decision to file for bankruptcy, it’s crucial that you educate yourself on what bankruptcy entails and retain the legal support necessary to guide you through the complexities of the bankruptcy process. To avoid making a costly mistake, our Rancho Cucamonga bankruptcy attorney explains some of the most common bankruptcy mistakes.
Running Up Credit Cards
Running up your credit card in the midst of filing for bankruptcy is perhaps the most common mistake individuals make in the process. The logic behind this is that because their debts will be discharged, it doesn’t matter how much they charge on their credit cards. It’s important to note, however, that there are some debts that are considered to be non-dischargeable – this means that if you decide to spend recklessly, charging everything on your credit card, you may be obligated to pay some, if not all, of those charges later.
Transferring Property Out of Your Name
In an attempt to save certain assets and property from being taken in the bankruptcy, it may be tempting to transfer property out of your name and give it to a family member before filing for bankruptcy. If a bankruptcy trustee finds that you tried to hide assets from creditors, he or she may be able to reverse the transfer. Hiding assets is usually deemed unnecessary since there are exemptions that allow you to keep your home, car, and other possessions.
Withholding Information from a Bankruptcy Attorney
Under no circumstances should you be hiding information from your bankruptcy attorney. Even if you think your attorney won’t understand your situation, keeping quiet about certain aspects of your case can often do more harm than good.
At Nguyen Law Group, our Rancho Cucamonga bankruptcy lawyer provides trusted counsel and legal advice when you need it most. To schedule a free consultation, call (909) 328-6280 today!