⚠️ 1. Draining Retirement Accounts to Pay Debts
Why it’s a mistake:
Retirement funds like 401(k)s and IRAs are usually protected in bankruptcy. Using them to pay off credit cards or loans could leave you broke — and still in need of bankruptcy.
Tip: Talk to a bankruptcy attorney before withdrawing retirement funds.
⚠️ 2. Transferring Property to Friends or Family
Why it’s a mistake:
Courts may see this as an attempt to hide assets. Transfers made shortly before filing can be reversed, and it may even lead to denial of your case.
Tip: Always disclose assets honestly. We’ll help you protect what’s legally yours.
⚠️ 3. Running Up New Debt Before Filing
Why it’s a mistake:
Using credit cards, taking cash advances, or financing big purchases right before bankruptcy may be considered fraud — and those debts may not be discharged.
Tip: Stop using credit as soon as you consider bankruptcy.
⚠️ 4. Filing Without Understanding Which Chapter Is Best
Why it’s a mistake:
Chapter 7 might wipe out most debts quickly, but Chapter 13 may protect your home or car. Choosing the wrong one can cost you money and time.
Tip: A qualified bankruptcy attorney will explain your best options.
⚠️ 5. Going It Alone Without Legal Help
Why it’s a mistake:
Bankruptcy law is complex. A small error in paperwork or timing can lead to dismissed cases, loss of property, or denied discharges.
Tip: We offer a free consultation to review your situation — no pressure, no judgment.
