If you’re considering bankruptcy, it’s important to know what mistakes to avoid. Mistakes can delay the entire process or even cause your filing to be denied by the court.
Here are several common pitfalls that can trip up filers and lead to costly delays or even denial of their bankruptcy claim.
Bankruptcy is a serious decision, so make sure you understand the process and know how to avoid these mistakes.
Trying to hide assets is never a good idea. Whether they are private funds, valuable items, or legally owned property, it’s almost certain that the hidden pieces will eventually be found.
There is nearly always a paper trail or some form of evidence left behind when something is moved, shifted, or stored away.
In most countries and states, concealing assets is a criminal offense which can lead to serious penalties if caught.
It’s much better to be honest about what you own and avoid the hassle altogether. Making sure your financial records are properly organized and updated can also help save time in case an official audit comes knocking at your door.
Ultimately, you’re better off leaving things out in the open instead of trying to cover them up when it comes to dealing with asset ownership.
Bankruptcy can be a difficult time, and while it might seem like a good idea to use a credit card before filing, this can actually hurt the bankruptcy process.
Credit card companies often deny bankruptcy filers who just used their credit cards prior to filing.
This creates an extra delay as well as potential problems with your discharge or exemption status.
It is best to be conservative with your expenses and try not to use credit for at least 6 months before deciding to file for bankruptcy protection, that way you can ensure that your case goes through the bankruptcy court quickly and easily.
As tempting as it might seem to use or increase your available credit during a period of financial difficulty, resist the urge to do so.
Taking on additional debt before filing for bankruptcy means you may be required to pay those debts back in full, or that some of your debt may still remain.
Before taking on any large credit purchases, speak with a qualified bankruptcy attorney who can provide you with information tailored to your current financial situation and explain what will happen once you file.
It also pays to review your finances carefully, as spending more money than you can reasonably pay back is only going to compound an already difficult financial situation.
As you go through the legal process, it is important to ensure that your attorney has a full understanding of your financial situation.
Honesty is always the best policy in this case so that they are able to fully represent you and have all of the requisite data for your case.
Failure to be upfront about your finances can potentially jeapordize the legal outcome, which could be expensive and stressful.
By being honest with your attorney, you are giving them the necessary tools to help you not only achieve the best outcome but also to understand exactly what they are working with during the process.
In the end, it’s much better to be candid up front instead of possibly facing any consequences due to a lack of transparency in your financial matters.
Filing for bankruptcy is a big decision and can have lasting financial consequences. Doing the paperwork correctly is essential, so it would be unwise to attempt to do it on your own.
Spending some money to get professional help can save you a lot of money and headaches in the long run.
Your experienced bankruptcy attorney will explain the regulations thoroughly and make sure you fill out all forms correctly, decreasing the chances of having them sent back or worse- having your case denied due to mistakes.
That way, you won’t have to worry about inadvertently missing any important information that could have helped your case with the court.
For this process, get quality legal help upfront and ensure that everything is on track from day one!
When it comes to managing your finances, paying off secured debts is an important part of the process. A secured debt means that a creditor holds some form of collateral regarding the loan – for example, if you took out a car loan, your vehicle serves as the collateral for the loan.
When making payments on these secured debts, it is crucial to keep up with them as overlooking payments could put you in default and result in severe consequences like foreclosure or repossession.
If you find yourself facing financial difficulty and are unable to make the payments, reach out to your lender first. Most lenders understand that life happens and will work with you to create a payment plan or other solution to help manage your debt responsibly.
If you’re considering filing for bankruptcy, there are some things you should know. First, don’t try to hide any assets. Second, avoid using your credit card right before you file – this will only make matters worse. Third, don’t make any large purchases on credit before you file. Fourth, be honest with your attorney about your financial situation. Fifth, don’t try to file for bankruptcy on your own – get professional help. Sixth, keep up with payments on secured debts, like your mortgage or car loan.
Following these tips will help ensure that the bankruptcy process goes as smoothly as possible.
At Blue Bee Bankruptcy, our lawyers are highly experienced in foreclosure and bankruptcy filing options. More importantly, we understand that each case we receive is unique and each client has different needs and goals. We will discuss these signs with you and decide the best route to take.
We strive to help our clients rebuild their lives and take steps toward a better financial future through filing.
If you’re dealing with the potential of bankruptcy, give us a call. Our team will work to help you by reviewing all of the options our firm has available. We will ensure you’ll get the best possible outcome for your situation.
Get in touch today so we can start working on either halting bankruptcies or preventing them from taking place altogether!