Filing for bankruptcy can help you rid yourself of debt and allow you to repair your finances. To ensure you can achieve these goals, it’s best to hire a bankruptcy attorney to help navigate the process. Even with legal representation, there are still common mistakes that could affect the outcome of your case that should be avoided, including those listed below. 

When Filing for Bankruptcy, Avoid These Errors 

1. Lying to Your Lawyer & the Court

To determine whether you’re in a position to pay creditors, you’ll be required to reveal all of your assets and income when filing for bankruptcy. If you’re caught lying, you could face steep penalties, and the case could be rejected. By lying to your bankruptcy attorney, they can’t do an effective job at helping erase or reorganize your debt either.  

2. Continuing to Use Credit Cards

Mismanaging credit before filing can lead to problems later. It’s best to not use credit cards, as running up any available credit balance could increase your debt. Creditors can also bring this to the court’s attention, challenging your request to dissolve the debts you owe them. 

3. Draining Retirement Accounts

In an attempt to pay off some creditors before filing, many people may tap into their 401(k) or IRA retirement account to access the funds. A bankruptcy attorney may not recommend this strategy. Paying off some creditors and not others shows favoritism, which is frowned upon by the court and prohibited by the bankruptcy code. Retirement plans won’t be touched during the proceedings anyway, which is it’s wise to keep the funds in these accounts.

If filing for bankruptcy is the best option for you, contact Mark O. Grater Attorney at Law in Groton, CT. With over 30 years of experience providing debt relief assistance to residents throughout New London County, you can trust the bankruptcy lawyer will help get your life back on track. Board-certified in civil trial advocacy, he will also provide sound counsel during personal injury cases. To schedule a consultation, call (860) 449-8059 or visit his website.