What are the most common mistakes people make when faced with a potential bankruptcy case filing?
Despite the fact that most people who file bankruptcy do so not because they have acted irresponsibly or are cheating the system, the media and credit card companies attempt to portray people who are in need of bankruptcy relief as doing something legally or morally wrong. In fact, most people who are required to file bankruptcy do so because of unexpected circumstances such as a severe medical condition, loss of job, divorce, or some other unforeseen circumstance. When people find themselves in these unforeseen and unavoidable circumstances, they often take action that they think may help them avoid bankruptcy or they think will make the bankruptcy go more smoothly. But in fact, some of those steps hurt more than they will help. The most common mistakes we see are listed below: A. Taking out a 401(k) loan, pension loan or retirement account distribution to pay credit card debts. Credit card companies and collection agencies will often call and send letters over and over again in an at