While filing for bankruptcy can be the first step towards revitalizing your financial future, it isn't an automatic fix to all your current debts and concerns. A thorough, effective filing requires continued vigilance by the filer and their counsel and mistakes can often hinder, even completely derail this process. Let's take a look at some of the most common errors individuals make during their bankruptcy filing.
Covering Your Tracks
There are some individuals who believe that they can file for bankruptcy and then, either directly before or directly after filing, reduce their assets to save them from being involved in creditor repayment. They usually do this by omitting a source of income or signing certain assets away. This kind of dishonesty can affect your means test or later jeopardize the viability of your filing. Many instances of this kind of activity are also illegal.
Abusing Your Credit Cards
When some filers accept the fact that they will be submitting to a bankruptcy filing, they'll sometimes take cash advances on their remaining credit since they figure it's all going to be forgiven or reorganized anyway. This is not always the case and recent debts are sometimes considered non-dischargeable, leaving the filer with more remaining debt than they counted on.
Ignoring Your Creditors
Filing for bankruptcy is not a pick-and-choose situation when it comes to the disclosure of your financial information. Maybe you want to leave off one creditor because you're confident you'll be able to pay them back or because you don't want to admit to owing them money. However, incomplete information like this can endanger and entire filing and get it dismissed.
Leaving Out Lawsuits
If you're filing for bankruptcy, you may also be in legal pursuit of compensation owed to you by other parties. If you are or are even planning to, this information needs to be included in your bankruptcy filing. Your bankruptcy won't interrupt these other legal efforts, however, they must be noted in the overall profile of your finances.
Hiring Inadequate Counsel
Bankruptcy is a complicated process that is best navigated with an experienced Brevard County bankruptcy lawyer by your side. Some firms are considered "bankruptcy mills" that churn out filings with little regard to client goals or concerns. At our firm, this is not our approach.
The Buchalter Law Group is dedicated to helping individuals and families through the uncertainty and strain of their financial woes and into a new chapter of their lives. For over three decades we have done this for our clients and continue to use that experience to better the financial future of those who trust in us.
Want to learn more about what our firm can do to make your bankruptcy filing as advantageous as possible? Contact us today.