Here are my top few financial mistakes people make on vacation-
1. Putting all the expenses on a credit card. I’ve seen people come in to file bankruptcy whose debt, or at least a chunk of it, is a vacation from 4, 5, 6 years ago. Is a week in Destin really worth paying for the next 3 years?
2. Timeshares- My dad swears by his timeshare. He paid cash and bought it from a ruputable company with a complete understanding of the terms and conditions. Unless you are paying for a timeshare with cash, understand all the terms, and can afford the fees, don’t buy. No matter what the salesman says, the same great deal will be there tommorow.
3. Gambling too much- no explanation needed.
4. Not looking for a deal. It you’re reading this blog chances are you know how to use the internet. Take time to research your destination- this will save you a few bucks and make your vacation more fun.

Well, I’m off to plan my vacation- I’m going this winter.

The following list is comprised of things that I tell folks to pay in the time leading up to bankruptcy and why:
1. Child support. Well, you go to jail if you don’t pay it. Your kids have to eat even if it means that Citibank is not going to get its minimum payment. In short, it’s the law and it’s the right thing to do. Pay your child support (or alimony). If not, you’ll need bail and child support money.
2. Food- starving is just no good.
3. Utilities- Besides the obvious the reasons to pay the utilities, there are other considerations- if your utilities are turned off you’ll have to give a deposit next time you sign up for them. There are also fees associated with reconnection. It will cost you even more money in the long run if you don’t pay the light bill. I’m not talking about charged off old bills. I am talking about current utility usage. Besides, who really want to live in a house where the toilet does not flush?
4. Housing- you can’t live in a Visa or American Express- you can live in a house or apartment. Consult with me before continuing to make housing payments if considering bankruptcy. There are some situations, like when surrendering a house in foreclosure, where paying the house is not worth it.
5. Car payments- take what I just said about housing and repeat it here. Often times, because of the amount of the car loan, it just makes more sense to let the car go. Call me. I’ll be happy to help you make a decision.
6. Taxes- Uncle Sam can reach right in your pocket if you don’t pay. Some taxes can be discharged or given preferential treatment in bankruptcy. You’ll want to decide what your plan of action is before deciding for sure whether or not to pay taxes.
7. Everything else…

It’s moments before my trip to Sin City. Like a lot of people, I enjoy a good bet. For some people, no bet is good.

Last year I saw people lose homes, wives, and cars because of the inability to deal with gambling addiction. Gambling is a source of entertainment- not a way to make money. NEVER go to the casino to try and make money for the mortgage, child support, or as a way to “make a living”.

Here are some signs of problem gambling:
• Losing more than you planned.
• Friends and family telling you that you have a problem
• You feel bad about gambling
• You want to stop but “just can’t”
• You’re hiding your gambling from people
• You are borrowing money to gamble
• You are taking time from work and school to gamble.
It you think you have a gambling problem, call, 800-522-4700.

I see people that have gambling problems. Bankruptcy can help. First, you need to help yourself.

Of course, if you have old utility bills that you no longer need the service associated, absolutely, list them as a creditor. Let bygones be gone.

First, service has to be made. This is legal talk for proper delivery of the documents. Most service is done by certified mail or service by sheriff. The Bullitt County Sheriff will send you a letter telling you that papers are ready to be served on you and that you can pick them up. Generally, I do not recommend picking the papers up. Make them deliver them. However, usually, unless you are really lucky, you’ll eventually get served.

A lot of people mistakenly believe because the complaint may not contain a court date they don’t need to take action. Nothing can be further from the truth. Failure to reply allows the Plaintiff to get judgment without having to litigate the case. If you haven’t contacted a lawyer yet, this is the time.

The second you get papers, if not before, is the time to call a lawyer. Unless you know how to do it yourself – and really, you probably don’t- things start happening quickly at this point. (Lawyers have 7 years of college along with a mountain of continuing education. Unless you have this too, call a professional).

What do at this point? Well, there’s litigation, settlement, or bankruptcy. We’ll talk about those next time.

I find havnig an unpaid deficiency usually catches you right before you go to buy a house, get married, or try and move on.

If you are facing foreclosure, call now.

Here are some of the biggest ones and how to avoid them…

10. Tapping the 401(k)- most funds in 401(k) accounts cannot be disturbed in a bankruptcy proceeding. However, money taken out of one can. Also, the huge penalties and taxes associated with a recent 401(k) withdrawal are not dischargeable in bankruptcy. 401(k) loans also create some problems.
9. Cold checks- Some people think writing a cold check is great way to get a fast loan. Besides being a crime, cold check criminal prosecutions are not fixed by a bankruptcy filing. Don’t write cold checks. Bankruptcy can’t fix jail.
8. Using credit right before bankruptcy- obtaining credit or making charges too soon close to the date of your bankruptcy filing creates debts that may not be dischargeable.
7. Not paying child support/alimony- A chapter 13 bankruptcy can be used to get your child support caught up. However, in the mean time you can go to jail for not paying child support. If you have to choose between paying child support or a credit card- pay for your kids.
6. Doing it yourself- presently, there are more than a dozen banned bankruptcy helpers. Is yours one? How do you know? By the way, if you are getting any advice from her, are you ready to come to court to clean up her mistakes? Does she have insurance? Did you know that if you don’t file your bankruptcy documents properly you could lose your home and possessions? Get professional help with your bankruptcy or be prepared to hire professional help to clean up your bankruptcy.
5. The right representation- Does your attorney have malpractice insurance? How long has your attorney been filing bankruptcies? Is the lawyer you meet the same lawyer that goes to court with you? Has your attorney been sanctioned by the Bar? Do you talk to the lawyer about your case or a “legal assistant”? Can the lawyer tell you how your bankruptcy will effect your divorce? There is more to bankruptcy than filing out forms. If something is too good to be true it probably is. Hire a professional, not just a lawyer.
4. The truth- failure to tell your lawyer and thus the bankruptcy court the truth is a crime. Many times, failure to give the lawyer all information creates problems later- that could have been avoided.
3. Getting a judgment- If you don’t pay debt, chances are, you’ll get sued. If you file bankruptcy before a judgment, you don’t have to go throw the time and expense of getting rid of liens. Many times, I can’t get back money that has been garnished. A lot of times, the damage is already done. Filing bankruptcy gets it fixed sooner rather than later.
2. Not filing taxes- besides being a crime, unfiled taxes create a set of problems that could have been fixed but now in bankruptcy. If you owe, you owe, no use in putting it off.
1. Not calling us- as soon as you think you might need to file bankruptcy, get advice from a professional. Like traveling across a jungle- filing bankruptcy requires a guide. Let us help.

Getting through bankruptcy can be easy or disastrous. Get me involved early. By planning ahead, we can do everything we can to make your bankruptcy smooth sailing and get you off to a fresh start.

Call today and start on your fresh start.