Things You Should Avoid When Filing for Bankruptcy


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Credit Card Applications » Research » Guides » Building Credit History » Things You Should Avoid When Filing for Bankruptcy

Things You Should Avoid When Filing for Bankruptcy

Updated: December 26, 2012

The content is accurate at the time of publication and is subject to change.

When the going gets tough and the tough gets going; people could tend to be irrational. But when we're talking about major issues like the possibilities of losing our major assets, then we shouldn`t be. Things can't always be smooth-going. Even if we have all the comforts in life today, we might just wake up the next day with nothing but debts.

Most people opt to filing bankruptcy when they`ve got no way to repay their debts but declaring bankruptcy is not that easy as you think. There are several legal procedures to be followed which should only be handled by bankruptcy experts.

When you've finally decided to declare bankruptcy, don't ever think of tweaking some of the legal aspects of bankruptcy procedures. When you do so, you might only find yourself getting into deeper trouble. To avoid conflicts, remember to avoid the following things:

Never think of hiding money during or before filing for bankruptcy. If you think that wiring it offshore under a friend's or relative's name is a good idea, you're wrong. There would always be ways the court or banks could discover them. More often than not, the only property that would be left to you are your home and car but then again, you still can lose them if you fail to make on-time payments. Hiding money during the procedure is deemed illegal and could only bring up greater anger on part of your creditors.

Bankruptcy is simply seen by a lot as an easy way to get out of debt and some would consider stopping paying their bills or utilities and maxing out each and every credit card they have. This has never been a wise thing to do for it will only result to higher interest rates in the future. Keep in mind that all the financial transactions that you make appear on your credit report. It stays there for about a score and would take a lot of effort to correct it.

Try not to be too irrational during these tough times. Try to keep your cool at all times. It could be emotionally stressful but try to be strong; strong for you and your family. To help you fix the problem, seek the help of only the experts. There are no shortcuts to resolving your issues so be very patient, be rational and above all, learn your lesson. When you`ve recovered be more careful next time.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
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