Creditor-Related Mistakes That You Shouldn't Make Before Filing Bankruptcy
Filing for bankruptcy can be the perfect option when you are in too much debt. However, the world of bankruptcy can be a bit complicated to navigate, and certain mistakes can jeopardize your ability to file. For example, there are a few creditor-related mistakes that you can make without even realizing it, so make sure that you avoid these three things.
Paying Creditors Selectively
It can be easy to pay certain creditors rather than others. For example, if you owe money to a family member or a close friend, you may want to pay that person back before you file. If you have always had a good relationship with a certain creditor, you might also be thinking about at least getting them caught up or paying what you can. It's also common for people to repay creditors that are more aggressive in their collections tactics just to "get them off of their back." However, it is important not to "selectively" pay your creditors by paying one creditor back and not another.
Ignoring Your Debts
If you know that you are going to be filing bankruptcy anyway, it can be easy to ignore collections calls and nasty letters. However, some companies can file a lawsuit against you, and this could happen more quickly than you will be able to file bankruptcy. Even though it can be uncomfortable and unpleasant to deal with collections agents, it's smart to stay in contact with them and to notify them that you are planning on filing for bankruptcy. You can give them your bankruptcy attorney's contact information and let them know that they can contact him or her for more information.
Raiding Your Retirement
You may want to raid your retirement account in order to try to pay some of your creditors, but this is generally not a good idea. You do not want to jeopardize your future. Before doing anything like this, make sure that you talk to your attorney about it. Depending on your situation, he or she may tell you that this is not necessary.
If you are planning on filing bankruptcy, it is important to start preparing for it in the months beforehand so that you can ensure that you stay on the right path. Luckily, a good bankruptcy attorney should be able to sit down with you to talk to you about your options and to give you advice about what to do in the months, weeks, and days before your bankruptcy filing. For more information, contact a professional in your area or visit a website like http://www.tblakelaw.com.