Mistakes to avoid while declaring bankruptcy

On Behalf of | May 3, 2021 | Chapter 7

Declaring bankruptcy can be a powerful method in overcoming demanding financial challenges. Medical debts, credit card debts, and unpaid utility bills are just a few of the types of debt that bankruptcy can help applicants take control over.

Despite the benefits of bankruptcy, there is no guarantee that an applicant will receive these benefits. Mistakes during the application process can cause a person to miss out on the benefits they need. Here are some mistakes you should try to avoid during your bankruptcy declaration:

Taking too long to begin filing

Putting off filing for bankruptcy can do more harm than you expect it to. It can take weeks or longer to discharge your debts through bankruptcy successfully, and the longer you wait to begin, the more time you allow creditors to harass you over your debt.

Going on a spending spree before filing

Some people believe that bankruptcy will discharge all applicable debt regardless of when you gained it or what you spent the money on. The truth is that a court could dismiss your case if they believe you are engaging in bankruptcy fraud. The court may also choose to discharge all of the debt outside of what you spent in your spending spree.

Trying to hide assets

Chapter 7 bankruptcy calls for an applicant to sell non-essential items like secondary homes as well as heirlooms and collectibles. If you try to hide assets you should be selling, and the court catches wind of it, they may deny your application, and you will still lose the time and money you spent to file in the first place.

Filing for bankruptcy without an attorney

An experienced bankruptcy attorney can help you avoid these and other critical mistakes that may keep you from gaining the financial freedom you deserve. Your lawyer can also help you achieve bankruptcy in a swift and efficient manner. Do not make the mistake of trying to qualify for bankruptcy without the guidance of an attorney.