Mistakes to Avoid
6 Mistakes to Avoid Prior to filing Bankruptcy
- RUNNING UP YOUR CREDIT CARD BILLS. Once you decide to file for bankruptcy do not make any "luxury" purchases and do not take out cash advances on your credit card. If it looks like you are maxing out you credit card in anticipation of filing for bankruptcy the trustee may find that those purchases cannot be discharged. You can still use your card to purchase food and groceries.
- REPAYING A FAMILY MEMBER (GIVING PREFERENCE TO A CREDITOR). If you owe a family member money, do not repay them as you are not allowed to give one creditor preference over another.
- USING YOUR (401K) OR RETIREMENT ACCOUNT TO PAY CREDITORS. Your retirement account is usually safe from creditors. Many people use their retirement accounts to pay down debts that would otherwise be dischargeable.
- TRANSFERING PROPERTY OUT OF YOUR NAME. If a transfer is made to defraud a creditor it is a fraudulent transfer. Do not quitclaim property to anyone to avoid having to list it as an asset.
- TAKING OUT A HOME EQUITY LINE OF CREDIT TO PAY DOWN DEBT. If you plan on filing for bankruptcy don't trade unsecured debt for secured debt. If you take out a second mortgage you could be putting your home at risk.
- FAILING TO FULLY DISCLOSE INFORMATION TO YOUR ATTORNEY. Your attorney can only effectively advise you if he or she has a full and accurate idea of your situation. Being truthful and open is essential in proper planning and drafting of the bankruptcy petition and schedules. Most of our clients keep everything and lose nothing due to our careful petition planning.
Hear From Our Happy Clients
At The Purcell Law Firm, P.C., your satisfaction is our priority! See for yourself what our clients have to say about working with us.
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Mr. Purcell was very open and honest. Such a caring person whom listens and guides you in the right direction from heart and not profit. My opinion! I would definitely recommend him.- LaTonya
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I have worked with Matt and his team for several years and they are the best around! They get things done with ease and experienced to get through complex matters.- Toqeer C.
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Hired Attorney Matthew Purcell for a Debt issue. Often times this type of issue takes weeks and months to resolve. Attorney Purcell agreed to take on this matter and was resolved within 2 weeks. Was treated with professionalism and dignity which is important to me.- JoAnn
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I'm a transaction coordinator for a team of agents, and for every transaction, we try to use Matt Purcell at Purcell Law Firm. Matt and his team excel in ensuring a seamless process. They promptly address any issues that arise, keeping us on track. Matt's professionalism and skill in his role are truly exceptional. Finding a closing attorney as excellent as Matt Purcell is a rarity! Highly recommended!- Alyssa M.
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Matt is not only a great friend but also an amazing attorney. He has closed over a 100 homes for me and I can honestly say I am a better realtor because of all the help he has given my clients and I. He constantly goes above and beyond for the agents and clients he works for.- Jason B.
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Matt Purcell is my closing attorney for 95% of all my closings. He’s very professional and great to work with. The office staff is very helpful and always quick to respond when me or my clients need anything. I cannot say enough good things about The Purcell Law Firm!- Erica H.