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Avoid These Things If You Are Considering Bankruptcy

Bankruptcy is the process of cleaning your credit when you have debt that has gotten out of hand and can no longer be paid. There is a lot that you should know before filing and what to avoid while in the midst of a suit.

Stop Using Credit

Credit is part of the cause of debt in the first place. Using credit while filing for bankruptcy can jeopardize the chances of the suit being properly filed.

Don’t Pad Your Bank Account

Low balances in your account are beneficial to your bankruptcy case. Adding extra cash to your assets can have a negative impact on your suit, can be used against you in court and seized as part of your assets.

Don’t Transfer Property

Transferring property before filing for bankruptcy can be construed as fraud. Not only will this interfere with your case, but it can also result in additional fines.

Don’t Pay Creditors

This may seem counterintuitive. After all, if you’re paying off creditors, won’t it make you seem more responsible? The truth is, paying a off a creditor while filing for bankruptcy can damage your chances of it being granted.

Bankruptcy does not have to cripple you. Avoiding the common pratfalls that can cause you to lose your case can put you on the road to financial recovery. For more advice on mitigating your bankruptcy suit, call Wages & Benham at 901-323-3902.