Having worked for many years as a lawyer specializing in El Paso bankruptcy, I have seen people make a number of errors that can often impede the filing process. If you're considering filing for bankruptcy, make sure you do some research ahead of time. Contact your local El Paso bankruptcy lawyer before you make any major financial decisions, especially if you're planning to file in the near future.
Here are a few of the actions you'll want to avoid taking before filing for bankruptcy:
1. Dipping into your home equity: Many people make the mistake of getting a home equity loan instead of filing bankruptcy. Using money from a lien to pay off credit card or medical debt is not a good idea, especially when you can file for bankruptcy instead. When you swap out that unsecured debt for debt on your home, you risk going into foreclosure if you can't afford the repayments. Is getting those creditors off your back worth losing your home? Probably not. If you're still uncertain, get in touch with an El Paso foreclosure attorney.
2. Withdrawing money from your retirement savings: Lots of people avoid bankruptcy by diving into their retirement fund to pay off high medical bills and credit card balances. Filing for bankruptcy can potentially help you reduce this debt or even eliminate it entirely. Why risk your retirement just to pay off unsecured debt that bankruptcy can likely take care of?
3. Leaving out creditors when you file for bankruptcy: Our team of El paso bankruptcy lawyers sees this all too often. It's fairly simple--you won't get debt relief from a creditor you fail to include in your paperwork.
4. Waiting until your assets are repossessed or your home is foreclosed upon: Don't wait until you lose your home over credit card bills or medical debt! Why not file for bankruptcy and keep your home? If you qualify, you can significantly reduce unsecured debt without losing the things you've worked so hard for.
5. Having a lot of money in your bank account when you file: If you have a large amount in the bank on the day you file for bankruptcy, that sum may not be exempt from creditors. Make sure you only have a nominal amount in your account upon filing, then return to regular bank usage several days later.
6. Filing if you're expecting a tax refund: Contact your El Paso bankruptcy attorney for the specifics, but be aware that exemption for tax refunds is usually limited.
7. Charging up your credit cards: If you take out cash advances within 70 days of filing, or you purchase $500 (per item) or more in luxury goods within 3 months of filing, these transactions will be presumed to be made under false pretenses. In addition, credit card companies may look back at your purchases over the past year and hold major purchases against you, claiming fraud or false pretenses.
8. Neglecting to attend your case hearing: If you fail to show up to what will probably be your only hearing, your case might be dismissed.
Article Source: http://www.orbitaloc.com/
Written by Kacy Suther. El Paso bankruptcy lawyers Watson & Maynez specialize in bankruptcy law. Texas residents can find their El Paso bankruptcy attorney or El Paso foreclosure attorney at bankruptcy4elpaso.com .
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Article Title: What Not to Do When Filing for Bankruptcy
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