Don’t Delay in talking to an attorney: If you’re in financial trouble and feeling overwhelmed creditors can take advantage of you. You might ignore calls and have lawsuits against you and then you will have the debt on the State Court record and not just your credit report. By taking advantage of the free consult at Angell Legal you can get informed and make good decisions.
Don’t take retirement loans or cash in retirements: You have to pay back loans to your retirement and you withdrawals are taxed and penalized. It is very difficult to get that money back in the retirement once it is out. And experience will tell you those loans and withdrawals are only a band aid on the problem and will not fix it. Down the road unfortunately most people are still in debt and are now short on retirement. An asset that is generally 100% exempt in Wisconsin.
Skip the guilt and shame: Bankruptcy debtors have been characterized as shady people trying to get out of their obligations while keeping their stuff. Other people that file bankruptcy feel morally obligated to pay their debts and shame that they cannot. Bankruptcy studies show that most bankruptcies are filed because of divorce, death, job loss, and medical debt. Most people are living paycheck to paycheck so when the unexpected happens, and it always does, they are not prepared and end up attempting to dig themselves out with credit cards and if they are really desperate payday loans. Bankruptcy is meant to help people in just those situations. It is meant for the honest but unfortunate debtor to get a fresh start.
Don’t pay off family and friends in the year prior to filing. The trustee assigned to your case can consider that to mean you are preferring that creditor over all others. Such payments can be voided, and the relative, associate or friend can be forced to hand over the money to the bankruptcy trustee.
Don’t use your credit cards in the 3 months prior to filing your bankruptcy. You are considered insolvent during this time period by law and creditors can demand those debts become non-dischargable. Develop a budget that allows you to live without the cards. That may also mean there is no money left to pay the cards. That is the time to come in a talk to Attorney Angell about bankruptcy.
Don’t lie or stretch the truth on credit applications, this is fraud and will be prosecuted by the Attorney General. Then the least of your worries will be losing your discharge of your debts. You will end up in federal prison.
You must disclose all of your assets and all of your liabilities/debts on your bankruptcy schedules.
Be consistent with valuing your assets in your bankruptcy paperwork and with your divorce paperwork and any other documents that you may be completing.