Bankruptcy Mistakes: Five Things You Should Never Do When Filing Bankruptcy

If you find yourself facing chapter 7 bankruptcy or chapter 13, or home equity loan bankruptcy, getting assistance from leaders and top-notch bankruptcy attorney California specialists (or state licensed practitioners in your local area), can make or break the process and outcome. This will ring true as in the closing phases of the process, you might discover even the smallest thing, affecting your life and freedoms, after bankruptcy.

Having these knowledgeable, highly skilled insiders on your case, might even enable, enhance and empower your recovery efforts, making measures, attempts, inquiries, applications, post-bankruptcy more efficient, streamlined. It can help you getting your life and freedoms back that much quicker, like securing a bankruptcy loan, filling out a bankruptcy form, filing documents and appendices, documents and paperwork, actually filing bankruptcy in the court system and many other related requirements, roles and responsibilities that they are better prepared and experienced to handle.

Comprehensive bankruptcy services from attorney bankruptcy law type experts, specializing in after bankruptcy recovery methods, tactics and techniques, an after bankruptcy car loan.

Florida bankruptcy processes and bankruptcy Los Angeles filings and protocol, might not differ that much from each other, but you might be best served by getting a local state-specific provider and practitioner to assist you. If in Florida, get the help of a qualified, registered and licensed Florida bankruptcy lawyer to take care of things on your behalf, every step of the way, from start to finish. Ditto for L.A. and everywhere else across the USA. Some are licensed to practice in more than one state and/or even internationally. It can also help you avoid costly errors and mistakes. Turning over the musing and attention to that next, it will become quite apparent how they can and will assist in some of the bigger picture items as well as the smallest detail

MISTAKE # 1: LOOKING BEFORE LEAPING – NOT CONSIDERING ALL THE ALTERNATIVES, RATIONALE, ARGUMENTS AND CONSEQUENCES OF THIS ACTION, PROCESSES, PROCEEDINGS AND FILING, CAN AND WILL COST TOP-DOLLAR, HURT YOU IN THE LONG-RUN (It is a marathon, not a sprint)

Do not see your personal bankruptcy or business bankruptcy filing, as a silver-bullet solution for all your money woes, creditors and difficulties. Do not err by seeing and expecting the process and legal maneuvering, to be/do things that it was not intended to enable or transact and cannot effect and conclude. There are numerous grievous errors and mistakes, oversights or misinterpretations committed as part of the dynamic unfolding of these complex processes, which can come at a high risk and price.

Bankruptcy is not a band-aid solution, but last resort, intervention type strategy, not purposed for those who cannot work with, allocate and utilize, spend, save and apply their resources and funds appropriately, mismanaging it. This process is by no means a mere debt discharge. Not to be used as an excuse or escape loop from paying bills and sticking to obligations or repayment agreements, loan stipulations and deadlines. The original purpose and intent of these stop-gap solutions and remedy measures were put in place to deal with those challenges and obstacles faced by individuals who have run into unintended, unexpected, unplanned or unforeseen financial difficulties, who have no way of meeting their agreement, commitments and no means of paying their way.

There are positive and negative aspects to this process and overlooking either will be detrimental. Advantageous to the filer, not so much his creditors. The process is also not without any consequences and aftermath. Sitting on your credit report for a period of seven years, affecting and influencing other decision-makers deciding about your empowerment, loan access and rates, does not bode or serve your interest well or in the best possible way. Banks and other lending institutions will now automatically label you as a credit risk and not someone they would want to include as a customer/choice consumer of theirs.

Can the debts that you have all be discharged through, in and during this process of declaring bankruptcy? Even if you get a discharge from the Courts, this might still mean that you will remain on the hook for things like legally ordered dues, damages or fines, debts (child or spousal support), fraudulent debt, educational loans to name but a few.

MISTAKE # 2: NEVER MANIPULATE, LIE, DEFRAUD OR BREAK THE LAW USING THESE PROCESSES – YOU WILL LIVE TO REGRET IT – THIS IS NOT THE TIME TO BE CHEATING OR LYING. It might not be the way out that you thought it was or bargained on. When and through filing for bankruptcy, never see it as a reprieve from being caught or getting out of being in the bad, negative spiral of escalating debt. Never use debt and credit cards, more loans to pay off other debt, opting NOT to continue the downward spiral of financial failure, bad habits, pattern behavior, getting deeper into debt, losing all credibility and creditworthiness, as well as your chance of recovery and recapture of some of your good track-record. But rather climbing on the road to consolidation repair and good credit ratings, improved scores and solid financial habits that put you back on track. Never buy a fake credit rating report to secure more credit.

MISTAKE # 3: DO NOT USE MORE DEBT AND NEW BORROWING/LENDING TO FINANCE and/or GET OUT OF DEBT! Never underestimate the power, impact consequence, not see opportunities, just because you filed for bankruptcy. Do not think that your life is over - do not be self-confident to your own detriment, under or over-estimate your own creditworthiness, recovery and prematurely borrow more money, that you cannot afford to repay, that could further damage your credibility and financial freedom, reputation and valuations. Like utilizing a home equity loan, risking your biggest asset, your realty holdings to pay off bad debt. Pension and retirement funds are exempt from the bankruptcy process, unless you sign a waiver to the contrary, allowing creditors to lay claim to those too. Borrowing against your retirement savings is not a solution.

MISTAKE # 4: NEVER DIY (DO-IT-YOURSELF) or GO IT ALONE, WITHOUT THE INPUT, ADVISE, CONSULATION AND/OR FORMAL REPRESENTATION OF A TRUSTEE OR LEGAL REPRESENTATIVE NICHE SPECIALIST AND bankruptcy lawyer, who knows the full extent and intricacies of bankruptcy law, that can advise you of possible ways, alternatives to avoid bankruptcy. Going it alone, with no trustee, legal representative is just simply not smart, however easy or deceivingly simplistic the paperwork, entries might seem to the novice and newbie to the process and proceedings, legal filings, documents and protocols that you might encounter as you deal with and undertake filing for bankruptcy.

These insiders and experts can advise you and champion your cause, interests – take advantage of the expert insider expertise, working on your behalf, negotiating and brokering deals that you might otherwise not have had access to as well as taking care of the smallest detail, to avoid errors and mistakes at time of filing, that can come back to bite or hurt you later, down the line.

Another key reason for not working without this expert on your side, can prevent filing without the appropriate information, like a complete list of all creditors, accurate and up to date, (amendments to the petition can be filed at a later time to rectify). Never try to hide assets, mislead the courts or justice system in any way, shape or form. This is the time to be truthful and honest about all of the aspects and perspective, ugly realities of the situation, however dire or ugly, desperate or ill-conceived.

MISTAKE # 5: DO NOT FORGET NOT INVESTING TIME, ENERGY, EFFORTS AND RESOURCEFULNESS, SETTING UP RELATIONSHIPS, SOLID FINANCIAL PARTNERSHIPS, NOT TAKING REPERCUSSIONS OF FILING INTO FULL ACCOUNT Not having a checking and savings account at your local bank, fostering relationships at grass roots levels, for when you need it the most is not advisable if you are planning to file, know it is inevitable, declared or ordered to file by the Courts.

Special cases can also affect your relatives, family and loved ones. That is, if you have borrowed money from a relative or family member, in order to avoid bankruptcy. If you have made any repayments at any point, leading up to, or following the filing, trustees can sue them for the return of those funds, straining and putting relationships in jeopardy (however unintentional you or willing they may have been at the time).