Mistakes to Avoid When Filing for Bankruptcy

bankruptcy filing mistakesIf you have made a decision that you want to file for bankruptcy, then the first thing that you should endeavor to do is to get yourself a bankruptcy lawyer. This is important because in recent times the law governing bankruptcy has become very complicated that you cannot be able to file it on your own and manage to see the process through by yourself.

Because this is a very complicated segment of the law, it is very common for people to make mistakes when they are filling for bankruptcy. That is why it is advisable that before you undertake the process, you should learn from the common mistakes that people commit when they are filling for bankruptcy so that you can avoid them. Let us look at some of those mistakes that are to be avoided.

Waiting for too long to file

With the current economic crises hitting hard, it can at times be nearly impossible for one to get out of debts. This has been occasioned by the increment of daily expenses. That is why it is advisable that you explore the available options. One of the ways to get out of this is filling for bankruptcy. This will not only allow you to have a fresh start but will give you a chance to start afresh. However, if you are in such a situation, you need to act as fast as possible. If you assess your options and see that bankruptcy is the best way to go then do it as quickly as possible.

Avoid filling in the wrong chapter

If yours is individual bankruptcy then most probably you will be filling either under chapter 7 or chapter 13. Even though both of them are meant for the same purpose, the process that is followed for each of them is different. To ensure that you avoid committing such a mistake, it is advisable to seek guidance from an experienced bankruptcy attorney who will help you make a decision on which chapter to file on depending on your financial situation.

Not disclosing your assets

When one is filling for bankruptcy, it is advisable that one discloses all their assets. If during the bankruptcy process, it is discovered that you transferred some of your assets for what is commonly referred to as safe keeping or you made any attempts to hide some of your assets, then you run the risk of your case being dismissed on immediate effect. It is advisable that you are honest about your assets on filling so that you are sure that your discharge is safe.

Failing to file the necessary paperwork

Since the entire process is complex, there are many forms that you will have to fill plus submit some documents. The documents can include your bank statements, tax returns or any other documents that will be required during the process. Ensure that you file all the required documents before the set deadline because if not, your case can be dismissed.

Not completing credit counselling

Ensure that before you file for bankruptcy, you have completed a credit counseling course. This is a must as you should attach a certification of the same when filing your bankruptcy forms.…

Read More