If you’re looking for a bankruptcy law firm in Bristol TN, you probably have a lot on your mind. Filing for bankruptcy can be an emotionally charged experience. You’re making a decision that is going to affect your financial situation for several years, so it’s understandable that it can be a bit anxiety inducing. The good news is that a bankruptcy law firm in Bristol TN can help you navigate through the process so that you come out ahead in the end. Following are a few mistakes to avoid when filing for bankruptcy.
Don’t Pile on Additional Debt Before You File
A mistake some people make is taking out an additional loan or adding more credit 70 to 90 days before filing for bankruptcy. If this money wasn’t used for items necessary for existence like food or utilities, the court may consider it presumptive fraud. There will be the assumption that you took the money out with no plans of paying it back.
Don’t Attempt to Hide Assets
Make sure that you don’t hide any remaining assets that you have. The court will be looking into your financial activity prior to filing, and if it finds that you attempted to hide assets, you could face penalties in addition to being denied the bankruptcy discharge. Be completely truthful and transparent.
Don’t Repay Debt After Filing
You may wish to start with a fresh slate by repaying people who may have loaned you money before you filed. If you do this within 90 days of filing, the bankruptcy trustee may consider this a preferential transfer and sue the payee to get the money back. We know that filing for bankruptcy can be challenging. Contact Dean Greer and Associates by phone or through our website to find out how we can help you through the process.