The months and perhaps even years that precede a bankruptcy filing in Oklahoma are usually difficult. As finances become more and more unstable, stress continues to pile up along with the bills. The feeling of running out of options can be overwhelming. So can coming to the realization that bankruptcy is a necessary next step. This next step is done so you can regain control of your seemingly hopeless financial situation. The period of time that precedes a bankruptcy filing is often so tenuous. This causes people to make financial decisions that seem like good ideas at the time, but later turn out to be problematic.
Your financial choices in the three to six months prior to your bankruptcy are important. Those decisions may determine if you have a successful Tulsa Oklahoma bankruptcy. The following are common examples of financial decisions which could have a negative impact on your bankruptcy proceedings. If you’re considering filing bankruptcy take care to make only those decisions that help ensure a successful Tulsa Oklahoma bankruptcy.
Common Mistakes Before Filing:
One common mistake people make before filing is using their retirement plans to pay down their debts. It’s easy to see why people do this. Its done to lower debt and avoid bankruptcy. Undoubtedly the bankruptcy in the short term is delays but not forever. Unfortunately, cashing in a retirement account in order to avoid bankruptcy compromises your future financial security. If you can avoid bankruptcy by using some other way to pay down some of your debts, then do that. If not, leave your retirement account intact and file for bankruptcy. It’s likely that you’ll be keep your retirement account. This is because you don’t lose your retirement account when you file bankruptcy.
No New Lines Of Credit:
If you are planning to file for bankruptcy, it is important that you not open up any new credit accounts. This includes home equity lines of credit and second mortgages. If a creditor shows that you incurred a debt without any intention to repay it, that debt wont be forgiven. Along the same lines, if you use your existing credit accounts in the months prior to bankruptcy, be careful what you buy. Charges for luxury goods and balance transfers are not likely to be discharged if those charges were made shortly before filing for bankruptcy.
Avoid Borrowing From Family:
Some people borrow money from family and friends prior to filing for bankruptcy. If you do this you must let them know that while you do intend to repay your debt to them, you’re unable to do so until after your bankruptcy case is complete. Further, if you make any payments to friends or family members in the twelve months prior to filing bankruptcy, the bankruptcy court will reclaim that money from them. If you are tempted to honor debts to friends and family members by giving them some of your assets instead of paying them. Don’t do it. Just like payments, the items are reclaimable. The bankruptcy court can sell them in order to pay your creditors.
Get Help From A Bankruptcy Lawyer:
You can set yourself up for a successful Tulsa Oklahoma bankruptcy by making well-reasoned financial choices prior to filing for bankruptcy. If you have questions about how specific financial decisions could affect your bankruptcy, a knowledgeable Oklahoma Bankruptcy Attorney can help. We offer a free initial consultation where we can answer your questions, evaluate your needs and explain your options. We invite you to contact us at South Tulsa Bankruptcy Lawyers or fill out our online form today!
