Bankruptcy Questions And Answers

Many people in the Tri-Valley and East Bay region of California are in financial trouble. At Khan Law, we help people understand and exercise their debt relief options. In some cases, filing for bankruptcy gives Californians the fresh financial start they need and deserve. In other cases, we might recommend debt counseling or negotiations with creditors.

It is important that you talk to an experienced and reputable attorney such as Alia Khan to assess your financial situation. If you are considering bankruptcy, the following list of do’s and don’ts may help you get started on a path to debt relief. These tips are general and may not apply in your unique circumstances. If you have specific questions or concerns, contact us or call us at 1-925-264-9083.

10 Bankruptcy Do’s and Don’ts

  1. DON’T pay or transfer money or property to family or friends if you may pursue bankruptcy. This could drag them into your case.
  2. DON’T pay ahead or pay off balances early on unsecured debt like medical bills, credit cards and personal loans.
  3. DON’T get a new credit card or use existing credit cards if you are considering filing for bankruptcy.
  4. DON’T cash out your retirement accounts, such as your 401(k) or IRA, before or during your bankruptcy case.
  5. DON’T exclude any assets or debts from your bankruptcy petition.
  6. DO create a budget and stick to it. If you find that there is not enough money to budget for your credit card or medical bills or other debt payments, schedule a free bankruptcy consultation.
  7. DO obtain a free credit report and examine it closely for errors. Have mistakes corrected promptly.
  8. DO continue making payments on secured debts, or debts that have collateral, such as auto loans and your mortgage.
  9. DO save important financial documents, such as your tax returns, W-2s and recent pay stubs.
  10. DO feel comfortable being open and honest with your licensed bankruptcy lawyer. At Khan Law, we treat every client with respect and dignity. Our office is a judgment-free environment. The more we know about your financial concerns, the better we can help you.

Bonus tips: Don’t get trapped in an endless debt cycle by entrusting your finances to an unscrupulous debt consolidation company. Do work with a trustworthy, licensed debt relief lawyer who will advocate for your rights under the U.S. Bankruptcy Code.