Things You Shouldn’t Do Before the Bankruptcy Process

It is true that some people do not take their bankruptcy as seriously as they should. It is also true that many first-time individuals might not understand the process to the standard they would like to and that distressing mistakes might be made. Having an attorney on your side through this process guarantees you that nothing is missed and also ensures that your rights are being protected. There are some things that you should always consider and things that you should never do before your bankruptcy if you wish to retain your rights during this process and truly move forward.

What You Should Never Do Before Bankruptcy 

Rushing into Bankruptcy Too Quickly: Many people see one aspect that stands out to them the most: The fact that bankruptcy wipes out their debt. However, this doesn’t mean that you want to rush directly into the process. You can only receive a Chapter 7 discharge for business bankruptcy once every eight years, which gives you a lot to think about. There are many aspects that can pop up that might put you in financial distress in the years to come, especially if you are suffering from an illness, facing eviction, and other aspects that will require your finances to be squeaky clean. This is why timing must be perfect so that you are prepared for everything that comes your way. 

Waiting Too Long: In some cases, however, the opposite must happen and you must file in a set amount of time rather than waiting too long. This is especially true in cases like those involving wage garnishment, where you’ll have more money to pay bills if you act quickly. If you are in a situation where you should get the process started as soon as possible, then it is a good idea to never delay.

Draining Retirement: You must always protect your retirement funds. Individuals make a common mistake before bankruptcy, which is withdrawing their retirement so that they can pay off debt that bankruptcy might wipe out. You should consider filing for bankruptcy firsthand, as you might be surprised by the results. 

Giving Dishonest Information: You always want to provide all of the correct information when you file for bankruptcy, which means being honest and never keeping information from the courts. If you fail to give specific information or you are dishonest, you could be subject to criminal penalties. You don’t want to do anything that could keep your bankruptcy from going forward. 

Racking Up New Debt: If you racked up debt within a few months of filing, you might find that the creditor feels that you will not pay them back and might be wary of your bankruptcy moving forward. 

Moving Assets: You might be tempted to sell or transfer assets, but this is not a good idea. Your intentions will almost always be discovered and you might be denied the discharge that you were hoping for. You might also be criminally penalized, which could have an impact on your future.

How a Business Bankruptcy Attorney Can Help 

If you are hoping to move forward with Chapter 7 bankruptcy or some other type of business bankruptcy, you might have questions for a skilled bankruptcy attorney in Texas. If you believe that errors were made and you are hoping to move forward with the bankruptcy process, you have many options and an attorney can help you get back on track with many aspects in your life. At MJ Watson & Associates, our attorneys are highly skilled at helping clients through the bankruptcy process and helping them achieve the results they deserve. Please reach out to us at (214) 965-8240 for more information.