Florida  Bankruptcy  Services

727-322-5881

Stop lawsuits, wage garnishments & foreclosures.

Contact us

Top 10 Bankruptcy Mistakes

Are you guilty of committing at least one of the following top 10 credit mistakes?   If so, you're in good company because most people have committed at least one big credit related mistake in their lives - even if they are not aware of it. 

1.  Using your 401k or IRA to pay off debt.  These assets are protected in the bankruptcy court and withdrawing funds from these accounts could result in a huge tax liability.

2.  Denial.  Waiting too long to file Chapter 7 bankruptcy will give creditors time to get a judgment against you that will remain on your credit report for 10 long years.

3.  Giving creditors or collection agencies access to your bank account or credit card.  This often results in unauthorized payments & hundreds of dollars in bank overdraft charges.

4.  Getting a second mortgage to pay off unsecured debt (credit cards, medical bills, etc.).  Why finance unsecured debt?

5.  Using a debt management agency.  Most actually work for creditors (not debtors) & repayment plans are often designed to generate agency fees & almost always fail.

6.  Reaffirming an unaffordable debt.  This usually applies to vehicles & homes that you can't afford or have negative equity.  

7.  Failure to list all assets or transfer assets to others (especially vehicles, jewelry, or real property).   This is a big mistake people make out of fear of  losing their property.  Don't do it as 30% of all bankruptcies are audited by the Justice Department & transfers will not go unnoticed.

8.  Failure to list all debts.  The court cannot discharge debts that are not properly listed therefore you must list all creditors & collection accounts.

9.  Using credit cards within 3 months of filing bankruptcy for luxury purchases, cash advances, or balance transfers.

10.  Not getting your free credit report.  Your debts may have been sold or or transferred to collection agencies.

Our #1 rule is always pay cash & take advantage of sales (especially for high dollar items such as televisions). 

Our #2 rule is to pay off your mortgage early!  If you pay an extra principle payment each month it wipes out 3 interest payments.  This means that you could have your home paid for in 10 years.

Copyright 2010
Florida Bankruptcy Services