Filing for bankruptcy should NOT be the very last thing on your list. Many people are waiting too long to file bankruptcy and they end up in a worse state. Many people come in to see us only to find out they have waited too long to file bankruptcy for various reasons. The usually come in when:
-getting sued
-having their wages garnished
-no longer able to pay legal fees to pay for a bankruptcy
-draining retirement money out of their 401(k) or IRA
-adding significant financial pressure to extended family members
We think the reason most people are waiting too long to file bankruptcy in Utah is simple: They hope they’ll manage to stay on top of their debts– but we ask at what cost?
Bankruptcy should not be the last resort when nothing is left to your name. If you put it off too long you might find yourself in a hole you’re unable to afford to dig yourself out of without time and serious self-discipline. Many of my clients here in Utah are surprised to learn that many of things they lost, just before they choose to file bankruptcy, could actually have been saved if we had talked just a bit sooner. Don’t let this be you.
At times people find ways to pay off their creditors in order to avoid bankruptcy. Unfortunately, it ends up costing them more money than it would be speaking to an attorney. Here are eight common mistakes you should avoid if you are in financial trouble without first speaking to an experienced bankruptcy lawyer:
- Taking money out of retirement programs to pay unsecured debt;
- Drawing down their bank accounts to pay dischargeable debt;
- Getting sued, or wages garnished;
- Borrowing money from banks, taking out cash advances from credit cards, dealing with payday lenders;
- Selling real estate or other assets;
- Transferring property to friends or family members;
- Borrowing money from family and friends;
- Dealing with nasty phone calls, texts, letters and stress.
Also we see some people that find themselves in a higher paying job, married or in better circumstances than a year or so before–but little do they know that they too waited too long to file for the kind of bankruptcy that would have helped them the most. The now must settle for a different kind of bankruptcy that is less advantageous.
Any of this sound failure? It might be that you are waiting too long to file bankruptcy. If you want more information on Waiting Too Long To File Bankruptcy, a free initial consultation with the Bankruptcy Guy is the best next step you can take. Contact us today and see what we can do to help you avoid costly financial mistakes.