Law Office of Rick Morin, PC

DON’T Pay Back Friends or Family Members

In the eyes of the court all creditors are to be treated the same, whether it’s a collection agency, a bank, or your mom. Most people want to pay back their debts, especially to friends and relatives. However, this could create preference issues in your case and the court can demand your relatives to pay the money back. You can do whatever you want after your bankruptcy is over. But repaying debts to family and friends within one year of filing for bankruptcy can create some headaches.

DON’T Go on a Shopping Spree

If all your debt is going to be discharged, why not max out your credit cards, right? WRONG. This is an abuse of the bankruptcy process and the Court takes these matters very seriously. Your creditors can seek a court ruling that says that their debts are not dischargeable in the bankruptcy. Worse yet, they could try to claim that you are abusing the bankruptcy process and that your entire bankruptcy should be dismissed.

DON’T Trust Your Credit Report to List All of Your Debt

Credit reports are a great way to get started when it comes to finding all your creditors. However, you should always review your report and get two if possible. There are many types of debts that won’t be listed on a credit report too. So it is important that you start thinking about who you owe money to well in advance of filing for bankruptcy.

DON’T Try to Cut Corners

My office sees many people who struggle to get by before their bankruptcy, let alone pay for an attorney. However, bankruptcy is an important financial decision. Once you file, you must see the process through. Don’t cut corners by hiring the cheapest attorney you can find or by filing yourself. This is a big decision and you will need an attorney who you can trust.

DON’T Try to Hide Things From Your Attorney

Your attorney is on your side and is there to represent you. Misleading your attorney or leaving out important information is like lying to your doctor. You might be embarrassed at first, but if you don’t tell them the important facts, they might not be able to help you.

Rick Morin is a bankruptcy attorney in Sacramento. He can help you file for Chapter 7 or Chapter 13 bankruptcy. Please call the office (916) 333-2222 to schedule your free bankruptcy consultation today.