If you came to a place where you believe declaring bankruptcy is your best way to go, we know it’s probably not easy. You might feel hopeless and depressed. And maybe you are questioning how valid is your decision. But if you many debts you are unable to pay, this can be the best option. Bankruptcy has its benefits, and that is something you should hold onto. It can be your way out and good starting points for some future, better decisions.

Filing for bankruptcy can be stress-relieving if you’re having the right perspective. However, there are some things you should consider in advance. Since this is another legal procedure, you need to fulfill certain criteria. Making mistakes in this process can cost you a lot. You might end up not being qualified to file it. If you’re following all the needed steps, you will end this procedure much faster. You won’t be as stressed, since everything will run smoothly. Also, you’ll be ready to move on with your life and make some better financial decisions in the future. Here are some big mistakes to avoid before filing bankruptcy.

1. Be careful with what you do right before filing bankruptcy

Source: cnbc.com

Although you are probably already aware of this, it should be pointed out once again. Be careful with your activities just before filing bankruptcy. If you see everything is going towards this, we recommend consulting someone. You should educate yourself and try to understand what are your options. If you are making some reckless moves, you might do something that will prevent you from being allowed to file bankruptcy. And that is not the path you want to go. Consulting a professional can fix your situation a bit and lead you to make the right decisions from now on.

2. Filing bankruptcy too soon or too late

Source: retaildive.com

The right timing is everything in life. If you’re aware that eventually, you’ll file bankruptcy make sure you’re having the right information. We recommend hiring an attorney as soon as you can. An attorney can help you to find the right time to file bankruptcy. Sometimes just a few more days or weeks matter. And, of course, hiring a bankruptcy attorney with enough experience can be very beneficial. You should understand that what is done is done and there is no looking back. Instead, you should think about your future and how to fix the current situation. That’s why waiting for too long to file bankruptcy makes no sense. A good attorney will make sure you’re not missing any deadlines. And they will also prevent you from doing it too early.

3. Increasing your debt

Source: debt.com

Yes, it might sound attractive to make some extra payments when you’re in a huge debt already. You may think you won’t even feel it since it is such a small amount in comparison to the size of your current debt. And before you know it, you spend an enormous amount of money and make this process even harder for you. What we would like to tell you is: don’t. Try to skip this part and go straight to solving your debt problems. Attorneydebtfighters can help you overcome your debt problems and move on with your normal life. They can remove the stress coming from your uncontrollable debt. If you’re going through a rough time, don’t despair. You will solve it all, just stop spending the money you don’t have and making a bigger problem.

4. Hiding your assets

Source: robinsonandhenry.com

If we want to end up this process as quickly as possible, we recommend being transparent. And if you’re not, you’ll have to deal with consequences. It may come to your mind that it’s a good idea to hide some of your assets. Maybe you’re thinking about intentionally not mentioning some of your accounts. But imagine if someone finds out. It can be considered as a fraud, and you might even end up in prison. Be aware that is an illegal activity, so you want to forget about it. Be honest and make filing bankruptcy as pain-free for yourself as possible.

5. Do not forward your assets to family members

Source: moneycrashers.com

Another thing that might look like a good idea is to forward some of the assets to your family member. It looks like an easy way to protect your owning and fix your current situation. If you own some expensive cars, pricy jewelry, or a stack of cash, you may start considering to transfer them to someone. Again, this is not something you should do, since the court will not be benevolent about it. We already explained why hiding assets should be avoided, and this is kind of another way to do it. Transparency and honesty are important for this procedure, so we recommend being as fair as possible. It will make this process easier in the long run, even if you can’t see it right away.

Conclusion

If you’re looking in the eyes of bankruptcy, we know it’s probably not easy. You might feel like a failure and having a hard time moving on. But you’re not alone in this. Many people are having some issues and it is not the end of the world. Filing bankruptcy doesn’t have to be a bad thing. It can be a breaking point in your life, from which everything will run smoothly again. But you should make smart moves and help yourself as much as possible.

Try to avoid some of the common mistakes related to filing bankruptcy. You will feel stress-relieved, and everything will end up much quicker, too. Make sure you’re making the right steps before starting the filing procedure. Consult a professional who will be able to help you fix the current situation. Together you can find the right timing. And you won’t file bankruptcy either too early, or too late. Don’t make your debt even bigger, and forget about hiding your assets, and transferring your owning to a family member. Don’t despair, just make sure you’re doing the best you can. Make smart moves and you’ll be debt-free and ready to start a new life in no time.

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