With so many people today facing a financial crisis, a lot of people have no choice but to file for bankruptcy.  Yes, it’s a hard process and can be damaging on your credit for years to come but before you even consider it or take steps in doing so, there are some things that you should do before you even file to save some of your assets.

Protect your retirement account

This is the most common mistake when it comes to bankruptcy.  Many people feel obligated that they have to pay off their bills.  What do they do instead of keeping their retirement safe and sound?  They will dip into their IRAs, 401ks, take the hit on interest, fees, etc and pay off debts.  If you keep your retirement funds in tact, these are normally protected by liquidation.  Always try not to touch retirement money.

Never load up your credit card

There are a lot of scum-bags out there and a lousy tactic that many use is to simply load up their credit card before filing for bankruptcy.  A lot of people think that it’s the great way to go because hey, you’re getting something for nothing!  Be prepared though because if the bankruptcy sees that you made these purchases recently, they can force you to pay them all back regardless of your bankruptcy situation.

Always show up in court

Yes, some people file for bankruptcy and they never show up in court.  The worst thing that you can do when it comes to you and your bankruptcy process is not show up for any hearings.  Doing this alone can potentially dismiss you and you won’t be able to file bankruptcy like you wanted to in the first place.

Always be honest with your attorney

When you meet with your attorney, you want to be as detailed as possible.  You will never want to lie and you’ll want to make sure that you never ever try to hide some of your assets because it’s not going to work.  You’ll want to make sure that you tell your attorney everything when it comes to your debts, how much money you have, etc.  If you fail to do so, you may find yourself in a lot of legal trouble.

Mistakes are made with anything in life but if you can prevent them, you’re going to have the advantage.  Make sure that you know what you’re doing when it comes to bankruptcy court.  Be honest, watch your assets and never do something that you wouldn’t want to anyone to do if you lent them money.