When you’re under financial stress, it can be tempting to take the pressure off by any means possible. However, you can’t file for bankruptcy an unlimited number of times. It’s important to think about your options as you work with a lawyer and avoid blunders. Here are a few common mistakes to keep in mind as you go through the process. 

A Guide to Common Bankruptcy Mistakes

1. Don’t Dip Into Your Retirement Accounts

When people run into financial trouble, they may use money in their retirement accounts to cover unpaid bills. However, this is a mistake, as bankruptcy can often wipe out your debts, saving you from having to utilize your 401K. By working with a lawyer to find the best option for your situation, you can ensure that your nest egg remains protected. 

2. Never Wait Too Long to File

As soon as you’re aware that you can’t cover your debts, get in touch with a bankruptcy lawyer. Waiting too long could be a huge financial mistake, costing you thousands of dollars in some cases. For example, you may end up paying off debts that you could have canceled via filing for bankruptcy. If you’re unemployed, don’t wait until you’re working again to speak to a lawyer; protect yourself financially by finding out about your options right away. 

3. Make Sure You File the Right Chapter

Filing for bankruptcy under the wrong Chapter could lead to major financial setbacks. For example, many debtors file for Chapter 13, which could last for a long period and be expensive. However, if you file for Chapter 7, you could lose some of your assets, which can be devastating for some. Luckily, a lawyer can help you amend your bankruptcy if you’ve made a mistake. Still, this process could be time-consuming, so you want to get it right the first time. 

When you need a bankruptcy lawyer you can trust, contact Ibold & O'Brien. Located in Northeast Ohio, they’ve been serving Geauga, Lake, Ashtabula, and Cuyahoga counties for over 40 years. Their attorneys are passionate about the law and will discuss your options with you extensively. Additionally, they’ll help you address your biggest worries and get you back on the road to financial health. Call (440) 285-3511 to schedule a consultation, or head to their website to learn more.