What Not to Do When You Are Thinking About Filing for Bankruptcy

woman thinking about money


By:Mike Cibik


Trying to make ends meet is possible even when you have a limited income. Unfortunately, you may decide to borrow slowly at times and find yourself bogged down with debts. If you are at your wit’s end, there is a way!


There is a provision to file for bankruptcy when your financial position looks bleak. It is going to reduce your economic woes considerably. You are indeed not alone! In fact, a lot of celebrities have gone down this road before.


From the cable TV host Larry King to Johnny Depp and Toni Braxton the list goes on and on.So there’s no need to worry unnecessarily.


As every case is different, it’s in your best interest to find out the facts pertinent to your situation by getting in touch with the top bankruptcy lawyer in town. You should retain all your bills as well as the pay stubs when you are contemplating such a move. Fortunately, your bankruptcy attorney will be able to help you during the process by providing you with timely assistance.


Remember that you may have to do certain things and also avoid doing specific ideas to get your current records straight before declaring yourself to be bankrupt.


Understanding bankruptcy is not too tricky though. You can read up and remain abreast of the facts or contact the best legal professional in your area for help.


You certainly have to tread with caution while filing for bankruptcy. Be sure to follow the advice of a Philadelphia bankruptcy attorney when you happen to be a resident of the city. Filing incorrectly will only add to your woes. So do it right the first time. Good Luck!


Settling the Debts – Do not go frantic trying to raise money for paying off all your bills. Remember that you would be declaring your inability to pay off your creditors by filing bankruptcy. So if it’s affecting your financial situation hold off on paying your credit card bills.


You can opt for Chapter 7 bankruptcy for being absolved of your responsibilities wherein your bills will be discharged totally. Or you can decide to pay off your debts easily by choosing to file for Chapter 13 following the bankruptcy law.


Asset Transfer– Your case is likely to be dismissed outright if you decide to hide some of your assets before filing. Do not even think of transferring your property or car plus any of your other tangible assets to your family members or friends.


The bankruptcy court is sure to uncover the facts in every detail of your financial dealings will be checked with a fine-toothed comb when you file. Any discrepancy discovered within the stipulated time will not only result in having your bankruptcy plea dismissed, but you may also be penalized for fraud.


Retirement Fund – Well, your retirement fund is exempted when you file for bankruptcy. Do not even think of using this nest egg to pay off your dues. You will only end up with additional debts that could have been avoided in the first place. The same applies to other kinds of 401(k) loans. Do not pounce on the money and use it up. It is best to obtain the help of a bankruptcy attorney before contemplating such a move.


Credit Card Dues– Sure, you know that your credit card bills are likely to be discharged once your bankruptcy case is approved by the court. However, you will put yourself at a disadvantage by spending lavishly via your credit card just before you file. The court certainly frowns on such an act and would decline to discharge the debts that you had incurred in the last three months before bankruptcy filing.


Self Filing – Yes! You know your financial position perfectly. Unfortunately, the same cannot be said about your knowledge of bankruptcy law. Beware of handling the bankruptcy filing yourself. There are many pitfalls in the way that may land you in trouble. It is always better to pay a small amount as legal fees than having to face failures and delay the progress of your case.


An able bankruptcy lawyer will represent you at every stage right from handling the paperwork to answering the questions put forth by your creditors as well as representing you at the bankruptcy court. So, go ahead and hire an attorney to ensure your peace of mind.


Bankruptcy is the process that helps people and businesses prevail over an extreme financial condition where it gets impossible to pay their bills and debts. The core purpose of bankruptcy is to help taxpayers and law-abiding citizens get a hassle-free exit from their financial chaos and get a fresh start. Consult one of our experienced bankruptcy attorneys at Cibik & Cataldo P.C. immediately at 215-735-1060 to get yourself out of the financial mess and start afresh.If you would like to discuss your case, feel free to give us a call at  215-735-1060.


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