1. CONSOLIDATING MY DEBT IS BETTER THAN SUBMITTING A RESURRECTION.
In theory, consolidation seems like a good and viable option. In practice, however, consolidation rarely works, and experience shows that in the long run, people don’t save money but in fact make them more expensive.
2. DO NOT WAIT UNTIL YOU CALL BEFORE CONTACTING A LAWYER.
If you won’t be able to catch up with all your bills and move on, you’re wasting your money. Filing bankruptcy will erase all your debts. There’s no point in paying bills that will be written off anyway. Save your money on filing fees, it will be much cheaper than paying bills you can’t afford.
3. RESURRECTION WILL BREAK MY CREDIT.
Is it right??? If you can’t afford to pay your bills, your credit may already stink. Filing bankruptcy will not worsen your bad credit. Conversely, by applying for credit you will begin to recover if you are smart to build it after you apply. Bankruptcy is a way to fix your credit and debt problems, it doesn’t cause them.
4. DO NOT PAY YOUR PARENTS AND FRIENDS BEFORE YOU SUBMIT.
Now I know what you’re thinking, it sounds wrong, but by not paying your family and friends you are actually saving them from headaches and big trouble. In bankruptcy, the trustee (the person who oversees your case) can go after your parents and friends and take the money you have paid to pay the money to other creditors. Your family and friends will not be happy if you involve them in the legal process because you are paying them.
5. DO NOT PAY YOUR CAR LOAN BEFORE SUBMITTING THE RESURRECTION.
By having a lien on your car, you protect the car in bankruptcy. The trustee is trying to find any assets (such as your car) that you own that can be used to repay your creditors. Loans on your car usually make that option unfeasible and the trustee will likely not pursue the sale of the car.
6. DO NOT TRY TO HIDE ANYTHING, REVEAL EVERYTHING YOU HAVE.
Failing to list any property you own could potentially lead to criminal action against you for bankruptcy fraud and causing him to lose your expenses (the thing that wipes out all your debts) in bankruptcy. Plus, it’s like the guardian is magic, he usually ends up finding out about everything, it’s just not worth it considering the punishment you face if you get caught lying.
7. DO NOT PUT YOUR MONEY IN OTHERS ACCOUNTS OR GIVE YOUR PROPERTY.
On this list of worst things you can do when filing this is probably 1(b) coming right behind the one we just talked about. The trustee will most likely be able to take the money and property back. This applies to any transfer within one year of submission. Like number 6 above if you do this, you run the risk of not being able to write off your debt.
8. DO NOT LIQUID YOUR RETIREMENT ACCOUNT.
Your pension is protected, by liquidating it you take it from the protected asset to a common asset than the trustee can get to pay the debt. You’ll still need to retire someday, so save it for what it’s for.
9. SUBMITTING A RESURRECTION DOES NOT MAKE YOU AN IMORAL OR A BAD PERSON.
Look, this is not meant to be a philosophical or religious statement. If you go bankrupt, your number one responsibility should be to provide for your family. The law allows people to file for bankruptcy as a way to deal with debt. Creditors use the law to help themselves in a similar way through tax subsidies, fee rebates and lawsuits. Whether this is justification for filing or not, it’s a fact, you have the right to apply.
10. I DON’T HAVE TEN BUT THINK TEN IS BETTER THAN NINE.
Take time to think about your options, but not too much time. You waste money and stress on things that can be easily taken care of.
