- Failing to list all Creditors: If you do not list a creditor, the debt will not be discharged. You should list all creditors, even if you have a co-debtor or intend to repay. Intentionally failing to list creditors you favor is perjury.
- Getting a Second Mortgage Instead of Filing Bankruptcy: Many clients put off the inevitable by getting a second mortgage to pay off debt and then end up losing their home when they cannot afford the mortgage payments, or filing bankruptcy and being burdened by the second mortgage.
- Waiting Too Long: It is human nature to put off unpleasant events. Wage garnishment, foreclosure and repossession can all be stopped by filing your case beforehand.
- Reaffirming Burdensome Debt: Do not reaffirm (keep) loans that are unreasonable. Doing so will make it difficult or impossible for you to recover financially.
- Dipping into Retirement Funds. Too many people consume their retirement savings before they wind up in bankruptcy. These funds would have been protected in bankruptcy.
- Filing when you have a substantial Tax Refund pending. The exemption for tax refunds is limited. You should discuss these with your attorney before filing.
- Large credit usage shortly before Filing. If you have had significant cash advances, balance transfers or other large credit use within three months of filing, they should be discussed with your attorney beforehand. You should not use any credit cards once you decide to file.
- Paying large amounts to family before Filing. These “preferences” can be taken back from your family member and distributed to all creditors.
- Transferring Assets. Assets transferred in anticipation of filing bankruptcy may be recovered by the estate. Bankruptcy trustees can undo fraudulent transfers that occur within 4 years of filing bankruptcy.
- Missing the Hearing. If you do not attend your hearing, your case may be dismissed with costs to you. You must bring photo ID & proof of social security number to your hearing.