After 33 years of Los Angeles bankruptcy work, I’ve seen tons of heartache and damage caused when people do things wrong before they file bankruptcy. Sometimes it’s too late for us to help. Sometimes, though, we are able to step in and find solutions.

That’s what we do at Bayer, Wishman & Leotta, and we enjoy doing it because we get to help real people every day. We don’t waste time. We get right to the most important issues that our clients face and we explain the solutions. Our law firm is based in Los Angeles, California, with several locations and you can call us direct at (800) 477-3111.

But what are some of the things people do wrong before they file bankruptcy? We know people do these things because of the stress and confusion they face when they are getting collection calls, having wages garnished, are in foreclosure, are being sued or having liens placed against their property. If you know someone facing debt trouble like this, do them a favor and send them this article.

So here are the top five things you should avoid doing if you need debt relief or you’re thinking about bankruptcy.

DON’T TAKE ADVICE FROM FAMILY OR FRIENDS

It is common for well-meaning friends and family to make suggestions or tell you to do things that are actually harmful to your situation. We’ve written about this in our Human Guide To Bankruptcy because it is a problem that keeps popping up. See TheBankrputcyGuide.net–Common Mistakes.

For example, friends might tell you to transfer assets out of your name (see below), send “cease and desist letters” to your creditors, hide assets, or to run up your remaining credit card balances before you file bankruptcy. These are examples of actions that will cause you trouble for various reasons or possibly could ruin your chances of getting bankruptcy relief.

Many of these mistakes are based on bankruptcy “myths” that are simply wrong. For more specific information just type the word “myths” in the search box at the top right hand side of this page. You’ll get some articles that will open your eyes and hopefully steer you away from bad advice from friends and family.

DON’T TRANSFER ASSETS OR MAKE BIG CHANGES BEFORE GETTING LEGAL ADVICE

People with debt problems are often afraid that their property and assets will be taken away. So they consider transferring assets or even hiding them, or perhaps simply omitting certain assets (or debts) from their bankruptcy paperwork (Schedules of Assets and Liabilities). Don’t do this.

There’s a real good chance you’ll get to keep all your assets even if you file bankruptcy, but only if you do it honestly. That’s because there is a complex system of “exemptions” in bankruptcy that will help you keep your property. Or punish you if you try to be sneaky! You need a certified expert in bankruptcy to guide you.

For more information on this topic, see Common Bankruptcy Mistakes That Will Wreck Your Case Before You Ever Get To Court.

DON’T HIRE THE WRONG LAWYER (OR THE CHEAPEST)

Lots of preventable things go wrong for folks that hire an inexperienced lawyer or the cheapest lawyer. For example, we’ve talked to people that lost assets that might have been protected; that failed to discharge taxes that might have been dischargeable or that even had their bankruptcy denied.

Some of these people filed under the wrong chapter or got bogus instructions for things they should or should not do before, during and after bankruptcy. And to make matters worse, you might have to go to multiple court hearings or meetings just because your attorney made simple mistakes. Don’t let this happen to you.

Go see a certified bankruptcy specialist. We’ve said before that hiring a discount lawyer is like buying a cheap and unsafe car. You may hope that it will get you to your destination, but you might break down or crash along the way and become a victim. Bankruptcy law has many intricacies and complications, and they are like potholes, pitfalls and hazards on your road to a fresh financial start.

DON’T AVOID LAWYERS SIMPLY BECAUSE YOU HAVE NO MONEY

Our first meeting with clients is a free consultation. All of our clients can afford this. Other bankruptcy lawyers do this as well. But be forewarned—there are huge differences in the thoroughness and quality of a free consultation among bankruptcy lawyers.

Speaking for Bayer, Wishman & Leotta, this meeting is an excellent opportunity for you or anybody with debt problems to get a comprehensive analysis of their legal rights and options. And if this free consultation does not result in a need for our services, then you will walk away with the full benefit of our advice and our encouragement.

Okay, that’s the first meeting. But if you need to actually pay a bankruptcy lawyer, how will you do it? Well, stop and think for a moment about the monthly debt payments you are making right now. We will help you understand how you can pay a lawyer and the ways you can afford it. For example, when appropriate, we will advise a bankruptcy client that it will be OK to stop paying their credit cards. We don’t want our client to throw money away, and that should free up enough money to get their lawyer fees paid within a reasonable time.

But whatever you do, don’t avoid the opportunity to get good legal advice simply because you think you can’t afford it. There will be a way to get you a fresh start. You don’t need to stay mired in debt!

DON’T GET DISCOURAGED

Money problems can be depressing and frustrating because it often seems that there is no solution that is just right for your circumstances. This is true for people even after they talk to a lawyer!

But no matter how confusing or frustrating it seems, don’t give up! An experienced bankruptcy lawyer—a certified specialist that cares about you—will take the time necessary to explain things and will help you find solutions.

And a good lawyer will be there, and be available to you, to explain things during the entire process–even after your bankruptcy case is finished.

Avoid making these key mistakes and you will be on your way to fair and honest bankruptcy relief. Good luck.

Bayer, Wishman & Leotta is a full service bankruptcy firm. We have offices in Downtown Los Angeles, the San Fernando Valley and Long Beach, California. Our attorneys are Certified Specialists in consumer and small business bankruptcy and you may reach us at (800) 477-3111. Check us out on AllExperts.com. Also, for lots of valuable bankruptcy information, look for us at TheBankruptcyGuide.net, our Human Guide to Bankruptcy.

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