Statesville, North Carolina
102 W Broad St.
Statesville, NC 28677
(704) 872-1911

Avoid These 3 Critical Mistakes Before Filing Bankruptcy January 14, 2019

Statesville, Iredell
Avoid These 3 Critical Mistakes Before Filing Bankruptcy, Statesville, North Carolina

If you’re having money problems, filing bankruptcy could be the answer. To secure a clean slate and discharge applicable debts, though, there are certain steps you must take—and certain mistakes to avoid along the way. Here are a few of the most common missteps that prevent individuals from regaining their financial footing by filing bankruptcy.

3 Mistakes to Avoid Before Filing Bankruptcy

1. Failing to Budget for Necessities

Regardless of whether you plan on filing chapter 7 or chapter 13, you will have to cover basic necessities before, during, and after the proceedings—without using a credit card. Therefore, it’s wise to devise a reasonable budget as soon as you decide to declare bankruptcy. A knowledgeable attorney can explain which debts are dischargeable — so you do not have to include them in the budget — and which are not — so you know to keep making their minimum payments.

2. Running Up Credit Cardsfiling bankruptcy

If you charge more than $500 on luxury goods or services to a single account within 90 days of filing, you will not be able to discharge the purchases during the proceedings. In the state of North Carolina, cash advances that exceed $750 are also non-dischargeable if they occur within 70 days of filing.

3. Not Tracking All Streams of Income 

Failing to report all sources of income on the bankruptcy petition is considered fraud. Even if you make the mistake inadvertently—perhaps you sell items online but haven’t completed a transaction in months, for example—the consequences could be serious. Depending on the circumstances, bankruptcy fraud can result in hefty fines and even jail time. 

 

If you’re thinking about filing bankruptcy in North Carolina, turn to the Law Office of James B. Mallory III. Located in Statesville, this firm is led by a seasoned attorney who has over three decades of experience helping clients overcome seemingly insurmountable financial hurdles. Visit the practice online to learn more about the debt help they provide, or call (704) 872-1911 to schedule a case review today.

Other Announcements, Events and Deals from Law Office of James B. Mallory III
Answers to Common FAQ About Chapter 13 Bankruptcy, Statesville, North Carolina
If you’ve fallen behind on your mortgage, car loans, or other debts, getting your finances back on track can seem nearly impossible. Fortunately, a Chapter 13 bankruptcy may provide ...read more
3 Ways Debt Can Impact Your Credit Score, Statesville, North Carolina
The first step in finding the most effective debt help is to understand the relationship between the debt you're carrying and your credit score. Both how much you have in debt and ho...read more
4 Tips for Bouncing Back After Chapter 7 Bankruptcy , Statesville, North Carolina
Chapter 7 bankruptcy eliminates most types of unsecured debt, a process that has given millions of individuals a second chance at a brighter financial future. In the initial aftermat...read more
3 Ways to Potentially Stop a Creditor From Filing a Lawsuit, Statesville, North Carolina
If you've fallen behind on payments, and a creditor's attempts to collect on the debt have been unsuccessful, they might choose to take legal action. But does this mean it's too late...read more