Common Bankruptcy Mistakes
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I am a seasoned El Paso attorney, and I have seen so many people jeopardize their cases by making poor debt relief decisions. For those considering filing for bankruptcy, especially in the near future, I implore you to do your homework and contact a respected El Paso lawyer in order to get the best possible result from your case. The following are some of the actions you'll want to avoid taking if you're planning to file for bankruptcy.

•Letting your home go into foreclosure. Don't use your home to pay off credit card debt! Sure, credit card companies and medical debt collectors will continue to harass you, but why not file for rather than lose your home? If you qualify for bankruptcy, any unsecured debt could be reduced or even waived. It's not worth losing your home to wait until foreclosure.

•Getting a home equity loan. Again, don't trade credit card debt for a debt on your home, especially if you'll be incapable of making the repayments. Why use money from a lien on your home to pay off unsecured debt when you can simply file bankruptcy? Getting creditors off your back is never worth potentially surrendering your home. Ask any El Paso foreclosure attorney--they'll tell you the same.

•Keeping a large amount of money in your bank account. On the day you file, make sure you only have a nominal amount of money in your bank account(s), because any large sum may not be exempt from creditors. A few days after you file you should be able to return to normal banking.

•Excluding any creditors from your paperwork. If you don't include a creditor when you file for bankruptcy,

you won't get debt relief from them. It's that simple.

•Racking up credit card charges. If, within three months of filing, you accumulate more than $500 per item in luxury good charges, or you take out any cash advances within 70 days of filing, you will be presumed to have made these transactions under false pretenses. Creditors may also look back at any major purchases made in the past year and claim that they were fraudulent or made under false pretenses.

•Filing when you're expecting a tax refund: Exemption for tax reimbursements is limited. Contact your lawyer to learn the specifics.

•Taking money from your retirement fund: Many folks attempt to avoid by using their hard-earned retirement money to pay medical and credit card debt. You could reduce this debt dramatically, even eradicate it completely, simply by filing for bankruptcy. Why risk your retirement just to pay off unsecured debt? Our team of El Paso lawyers sees this mistake made on a regular basis.

•Not showing up for your case hearing. You will probably only have to attend one meeting, and if you don't show, your case could be dropped.

Written by Kacy Suther. El Paso lawyers Watson & Maynez specialize in law. Texas residents can find their El Paso attorney or El Paso foreclosure attorney at bankruptcy4elpaso.com .