Below are some general tips on dos and don'ts when filing for Bankruptcy regardless of whether you are filing for Chapter 13 or 7 Bankruptcy:
What to do
- Be aware. Financial trouble can endanger your home, your marriage, your health, and many other aspects of life. Take the situation seriously and talk with an experienced attorney as soon as you can.
- Be honest. Even if the amount of your debt or the details of your situation are embarrassing to you, it is important to be open and honest with your lawyer. We need a true assessment of your debts and assets to effectively assist you.
- Keep making payments. Continue with your payments on your house, car and other property you want to keep. If you don't, the property may be foreclosed or repossessed.
What NOT to do
- Don't run up your credit cards just before filing. If you take out large cash advances or spend an exorbitant amount right before you file for bankruptcy, creditors may challenge your attempt to discharge their debts.
- Don't take money from your 401(k). If you withdraw money early, you may be liable for non-dischargeable taxes and penalties. Talk to our law firm to learn more.
- Don't transfer property or hide your assets. Both are illegal. Our law firm can explain legitimate options for protecting your assets.
- Don't sign anything from your creditors. Talk to us before signing any documents. We will also take the burden of talking to your creditors.
- Don't juggle credit cards. Using cash advances from one credit card to pay off another will only get you deeper in debt.
The above are some tips but you should consult an experienced Sacramento Bankruptcy Attorney for advice specific to your case. For more information about what you should do and not do when filing for bankruptcy, call Muoi Chea Bankruptcy Attorney to discuss your case. Bankruptcy Attorney offices located in Sacramento, Stockton, and Fairfield, California.