Bankruptcy can provide the much-needed relief to save you from debt issues you have experienced. However, you have to do everything right to enjoy a new financial start. Failing to meet all the legal requirements or following the wrong procedure can lead to the denial of your claim. It can also get you into trouble with the authorities if your mistake seems like fraud. Therefore, you should work with a professional lawyer when filing your claim. They will guide you to ensure that you avoid the following bankruptcy errors that may worsen your situation.
Choosing the Wrong Bankruptcy Option
Choosing the wrong bankruptcy option can sink you into more problems, complicating your situation. The court wants a conviction that you'll be able to clear your debts if allowed to pay them in portions. Therefore, if you're unable to convince them of this, your application will be denied, allowing your creditors to acquire your property to recover their money. A professional legal advisor can be helpful when applying for bankruptcy. They will evaluate your issue and recommend the best chapter, and ensure that your application is successful.
Failing to List Some of Your Belongings
When you file your application, the court will require certain information from you to determine your eligibility. Therefore, you have to prepare the documents the court requires before your hearing starts. For example, you have to render a file with a list of all your assets, including cars, houses, and statements showing the amount of money that is in your bank accounts. Failing to include your belongings on the list can delay your case if someone moves to court claiming that you lied.
Giving Misleading Information
The bank trustee could argue that your omission was a deliberate move to commit fraud. As a result, the court might slap you with a fine, increasing your financial problems. Besides, the judge might hand you a jail sentence, affecting your career and damaging your reputation. An experienced attorney can help you avoid these errors by ensuring that you've included all your assets in your application. They will list all the items you may have given your family members or friends.
You have a perfect opportunity of getting a new financial start and another chance to rebuild your life by filing for bankruptcy. Unfortunately, making the mistakes above can blow that chance, increasing money problems in your life. Working with an experienced attorney dealing with bankruptcy applications can help you prevent them and any other errors, improving your chances of getting a discharge of your debts.
Contact a local bankruptcy lawyer for more information.