Filing for a Dallas bankruptcy should be a straightforward, relatively painless process. All you have to do is report your liabilities and assets to your Dallas bankruptcy attorney, ensure that you follow his or her advice carefully, and wait for just a few months for your debts to be discharged.
However, like love, the course of bankruptcy doesn’t always run so smoothly – especially if you make one of these common mistakes. Don’t let these myths, mistakes, and missteps derail your Dallas bankruptcy – your financial future depends on it!
Paying Off Family Members
Morally, you may feel that you should pay back family members who loaned you money before paying your creditors. However, if you forked over $2,000 to Dad before filing for bankruptcy, you can bet that the Dallas bankruptcy courts will definitely not look kindly on your petition. Your relatives are considered creditors as much as your credit card company and lenders; therefore, if you make a conscious effort to appease one at the expense of others, there may be repercussions.
Not Including All Household Income
You know that you’re supposed to report all of the income you make. However, Dallas bankruptcy courts want to see all the household income that’s coming in, even your daughter’s $400 monthly paycheck from her part-time job if she is living with you. Not reporting this income could result in a dismissed bankruptcy petition.
Transferring Your Assets
It stands to reason that transferring your assets to anyone right before filing for bankruptcy is considered fraudulent. Well, your suspicions are right: not only is it fraudulent, it’s also illegal. You might be tempted to transfer your assets to protect them, but this will definitely guarantee that you’ll lose the assets you’re so keen to protect. If you’re really concerned about your assets, talk to a Dallas bankruptcy attorney to see what you can do to protect assets like your car and house. Often, you’ll discover that some of your most precious assets are protected under bankruptcy law.
Running Up Your Credit Card Before Filing
We’ve said it before, and we’ll say it again: if you run up your credit card before filing for bankruptcy, you’ll get your petition thrown out. The only exception to this rule is if you can prove that you had to use your credit cards to pay for necessaries.
Don’t let these common mistakes derail your bankruptcy!