Learning About Divorce

« Back to Home

Don't Make These Common Bankruptcy Mistakes

Posted on

Have you decided that bankruptcy is the best way to deal with your financial woes? If so, you'll want to do everything you can to ensure that you go through the bankruptcy process smoothly. Here are some common mistakes that you may make along the way.

Delaying Your Taxes

It can be problematic when filing for bankruptcy if you haven't completed your taxes. If you fill out all the paperwork and wait for a response, it is likely that your case will be denied until you have filed your taxes. The Bankruptcy court uses tax documents to determine what your income is, and without it, they cannot figure out if you qualify for bankruptcy. Don't delay filing your taxes to avoid running into this problem.

Giving Incorrect Correct Info On The Paperwork

The questions being asked of you on the paperwork for a bankruptcy filing are very important, and you must fill out everything accurately and honestly. Forgetting to document certain assets and income can result in a bankruptcy case being denied. If you forget to write down a certain debt, it's possible that it won't be discharged once the bankruptcy filing is approved. Don't take shortcuts when filing paperwork, take your time and make sure that everything is correct.

Taking On Additional Debt

Once you decide to use bankruptcy to discharge your debts, it is very important to not take on any more debts. That is because a creditor could prove that you took on the debt with the knowledge that it would be discharged. If this happens, you will still be responsible for paying back the debt. There are some exceptions to the rule, such having an emergency medical bill that happens close to your bankruptcy, but for the most part you will be responsible for new debts once you decide on using bankruptcy.

Transferring Assets

Think that you can save your home or vehicle by transferring it to another person before you file for bankruptcy? There will be a paper trail when doing something like this, and the bankruptcy court will find out. It's possible that these actions will cause a bankruptcy case to be denied, or you will be accused of criminal charges by trying to defraud the courts.

If you think that you'll need help navigating the legal process that surrounds a bankruptcy, reach out to local bankruptcy attorney services to guide you through the process.