Managing personal and business finances can be difficult for anybody, but when you are having so much trouble that you are constantly receiving calls and letters from bill collectors and you can’t manage to figure out how to pay your bills, it may be time to file for bankruptcy.
Filing bankruptcy in Philadelphia is a big decision, and one that shouldn’t be made without the guidance of an experienced Philadelphia attorney who can explain the various types of bankruptcy filings that are available to you, which is most advantageous, and what the pitfalls and advantages are of going forward. The attorneys at Reinherz Law have been providing knowledgeable bankruptcy law representation to Philadelphia area residents for many years.

There are a number of things that it is helpful to remember as you are approaching bankruptcy, and several common mistakes that it is import to avoid. Remember that when you are filing for bankruptcy, you are doing so to give yourself the opportunity to give yourself a clean slate, and that it is therefore important to do things the right way in order to make sure that your filing is approved and that you don’t start yourself off on the wrong foot. Here are five tips on what to avoid when filing bankruptcy in Philadelphia:

• Don’t run up your credit card debt in anticipation of filing for bankruptcy. Many people think that anything that you’ve charged will be discharged by their bankruptcy, and they try to take advantage of that by charging luxury goods in the days before their filing. The rules say that any charges for luxury goods and services owed to a single creditor within 90 days of the filing are owed and can not be discharged. The same is true of cash advances of more than $750 within 70 days of filing. If you make this mistake, your goal of having a fresh start will begin with debt.
• Don’t try to pay down your credit card debt with the money you have in your retirement account. In most cases, retirement accounts are protected assets and can not be taken in a bankruptcy proceeding.
• Don’t try to game the system by transferring property out of your name, failing to report income or property (including tax refunds), destroying of hiding records or in any other way misrepresenting facts or lying on your bankruptcy papers.
• When you have been asked to appear to defend yourself in a court proceeding for failure to pay, don’t fail to show up. Even though you’re filing for bankruptcy, you still need to appear at collections hearings until your case is actually filed, and this can take some time.
• Don’t make the mistake of misleading your bankruptcy attorney. Your lawyer is there to act as your advocate, but the service that they provide is only as good as the information that you have given them.

If you are in need of legal advise or representation regarding filing bankruptcy in Philadelphia, contact the attorneys at Reinherz Law to set up a convenient appointment.

Learn more about filing for bankruptcy HERE.