One of the most costly mistakes people make is draining their retirement account in order to make minimum payments on their credit card bills. If filing for bankruptcy is just a matter of time, then there is no reason to drain your retirement accounts. Your credit card balances will be eliminated in bankruptcy and the court cannot touch your retirement assets to satisfy your creditors. Don’t rob Peter just to pay Paul!
Since I am going to file for bankruptcy in a few weeks anyway and I still have money available under my credit line can I continue using my credit card?
Absolutely not! If you continue to make charges and then file for bankruptcy, you can expect the credit card company to file an objection and the court will hold you personally liable for those charges. The moment you begin contemplating bankruptcy, the credit card usage must stop. Also, it is fraudulent to make any transfer of assets from your name to someone else’s name prior to filing for bankruptcy.
Can you make those harassing phone calls and annoying collection letters stop?
Yes. The moment that you retain my services you will begin to instruct all the debt collectors that are calling you/writing you that you have retained counsel and direct them to contact me regarding any of your debt matters. If they fail to listen, I will promptly get their attention.
I’ve heard some rumors that since the new law passed in 2005 it is nearly impossible to declare bankruptcy. Is that true?
No. Over 1 million people successfully declared bankruptcy last year. Since the law changed, consumers must complete more paperwork and the court scrutinizes one’s finances a bit more closely, however beyond that, the fundamental benefits extended by the bankruptcy laws continue to exist.
Will I be able to keep my car? My home?
I hate to use the “it depends” answer, but it really does depend on a number of factors. We can determine more during our initial consultation.