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If you live in the Kansas, Missouri area and are considering Kansas bankruptcy as a way to deal with your financial problems, we recommend you contact a bankruptcy expert near you and have him/her review your situation and suggest the option that is best for you. The following article is provided by our Kansas bankruptcy attorney. |
The five most common mistakes when it comes to Kansas bankruptcy
Whether or not to file bankruptcy in Kansas City, Missouri is a very difficult decision. To help you decide, we have put together a list of the five most common mistakes related to Kansas bankruptcy. Here is our list:
1. Waiting Too Long
No one wants to file for personal bankruptcy. Putting off unpleasant events is in human nature. Unfortunately, with financial problems, the longer you wait, the worse your problems can become. Wage garnishment, repossessions of assets, and even just the phone calls from creditors can all be stopped by filing Kansas bankruptcy before creditors begin these collection actions.
2. Debt Consolidation Instead of Filing Bankruptcy
One of bankruptcy alternatives is debt consolidation. There is nothing wrong with debt consolidation. You should consider debt consolidation before going bankrupt. However, if you have more debts than you can handle, trading in a number of small loans for one large loan may not be the solution. You are only prolonging the inevitable, which causes you more stress, and may make matters worse.
3. Filing Kansas bankruptcy just before you receive a tax refund
Depending on the time of year, you may be about to get your tax refund. By waiting until you get your tax refund before going bankrupt, you may be able to get your tax refund, and use if for other purposes, like getting caught up on rent or other day to day bills. Of course if it will be many months before you get your tax refund than it probably makes sense to go bankrupt now, but this is something that you should discuss in advance with your Kansas bankruptcy attorney.
4. Reaffirming High Secured Debt
In some cases it is possible to keep certain debts. For example, if you have a loan secured by household goods, you may be able to reaffirm or keep the loan, and keep the secured asset. However, keeping these loans may make it difficult or impossible for you to recover financially. You need a fresh start (which is what Chapter 7 bankruptcy offers), and that means getting rid of as many debts as you can.
5. Large Credit Usage Shortly Before Filing Kansas Bankruptcy
Creditors will review all transactions you have made within the three months before you file for personal bankruptcy. Excessive purchases may not be discharged in a bankruptcy.
For more information about Kansas bankruptcy and bankruptcy alternatives, please contact our Kansas bankruptcy attorney today either to set up a no-charge initial consultation or to ask a bankruptcy question.
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