Bankruptcy Mistakes to Avoid

Preventing Common Missteps in Bankruptcy

When you are burdened by too many debts, bankruptcy may be one of your best options. Before making any final decisions regarding your finances, it is recommended that you seek financial and legal counsel from an experienced lawyer. Many times people contemplating bankruptcy make mistakes that can affect their case and result in more serious financial troubles. A skilled bankruptcy attorney can discuss how to avoid some of these common errors, such as:

  • Putting off making a decision regarding your debt situation. Creditors will initiate legal actions to collect on a debt, including repossession, foreclosure and wage garnishment.
  • Using the equity in your home to pay off your debts. If you are unable to make payments on your equity loan, you will lose your house.
  • Making large purchases prior to filing for bankruptcy. Creditors can challenge the purchases (and your bankruptcy petition) as evidence that you had the income needed to meet your financial obligations.
  • Paying off family and friends. The court can order the return of the money and redistribute it to your creditors.
  • Transferring your assets before filing. This is considered a type of fraud.

If you are considering bankruptcy, getting advice from a legal professional knowledgeable in bankruptcy laws and guidelines is extremely important. The Cartwright Law Firm, PLLC will make sure you understand what is expected when you file your petition, and protect your interests. We have represented many clients pursuing bankruptcy to a good result.

How Can Our Bankruptcy Attorneys Help You?

The bankruptcy process will generally go smoothly if you are aware of all of the legal requirements prior to your filing. Our firm will conduct an extensive review of your financial situation and manage your bankruptcy case from beginning to end. We are skilled advocates that will provide the legal support you need to achieve a better financial future. Our firm proudly services residents of Detroit, Southfield and Pontiac.