Mistakes to Avoid When Headed for Bankruptcy

Physician's Money Digest, April 2006, Volume 13, Issue 4

As if declaring bankruptcy isn't badenough, there are still slip-ups you canmake during the process that will deepenyour troubles. Bankrate.com has identifiedthe following bankruptcy blunders youshould steer clear of:

•Not disclosing a previous personalbankruptcy is a big mistake, as the courtcan easily find out about previous filings.

•If you don't disclose all of yourassets to your attorney or the court, or tryto hide an asset by transferring it out ofyour name, not only can your bankruptcypetition be refused, but you can land ineven more legal trouble.

•Don't employ a paralegal to handleyour case, as it's not their job to supplyreliable legal counsel. Instead, hire a reputableattorney who understands all theins and outs of the new bankruptcy laws.

•Don't use your credit cards heavily ortake out a cash advance in the 3 monthsbefore you file for bankruptcy, as you mayhave to return some or all of the money forthe charges and bring creditor challengesto your bankruptcy.