I spent my 20s mismanaging my money, and came to regret all of those impulse purchases placed on credit cards when my credit score plummeted due to missing a few payments. I didn't learn how much this would affect my life until I was denied for both an auto loan and mortgage in the same year due to my bad credit score. I spent the next few years cleaning up my credit report and putting every extra penny I had toward old debts. Having to put my impulse spending on halt was difficult at first, but it was a great learning experience and I now realize how rewarding saving and investing money really can be. I have put a lot of research into good money management techniques, so I decided to start a blog to share what I have learned with anyone who needs help!
The vast majority of people never plan on filing for bankruptcy-- in many cases, people consider turning to bankruptcy due to huge medical debt, the loss of a job, divorce, or loss of income due to the unexpected death of a spouse/partner. Coming to the decision to file bankruptcy is not always easy, but in many cases, it is the best option. But, if you're going to file for bankruptcy, it is important to do so the right way. Whether you're considering bankruptcy or have already started the process, avoid the following bankruptcy mistakes:
Living with Debt Longer Than Necessary
Living with mounting debt that you know you can't afford to repay can be incredibly stressful. It is not uncommon for people to avoid filing for bankruptcy because they think their financial situation may change in the future, but when your financial situation is dire, putting of bankruptcy just allows debts to grow and calls from bill collectors to continue. If you can't pay your mortgage, credit card bills, or medical bills month after month, it is a good idea to consult a lawyer to learn more about your options.
Thinking Bankruptcy will Ruin Your Life Forever
Many people believe that bankruptcy is the worst thing that can happen and that it will permanently destroy their credit and leave them with absolutely nothing. In reality, if you are deep in debt and have had bills sent to collection or have numerous late payments, bankruptcy may not have much of an effect on your credit score. Plus, after filing for bankruptcy, you will have the opportunity to rebuild your credit. In addition, there are many bankruptcy laws that allow a person to keep many of their possessions after filing for bankruptcy.
Taking on More Debt Before or During the Bankruptcy Process
Since debts are discharged after a bankruptcy is finalized, some people mistakenly believe that they continue to rack up debt by using their credit cards. This is a very bad idea, and can put your bankruptcy filing in jeopardy. Purposely acquiring more debt immediately before filing for bankruptcy or during the process can result in the court dismissing your case due to bankruptcy fraud.
Not Disclosing Assets
When filing for bankruptcy, it is absolutely essential to disclose all of your assets to your lawyer and the court. Failure to disclose assets or trying to hide assets while going through bankruptcy can land you in a lot of trouble and the court may choose to dismiss your case due to your dishonesty.
Contact a law firm, like Molleur Law Office , for more help.Share
8 October 2017