Filing bankruptcy isn’t something that’s done on a whim. Most people think for a long time about whether they’re going to file or not.
Once you decide that you’ll file, you must ensure that you don’t do anything that can have a negative impact on the filing. Here are three things to be sure you avoid when you’re filing for bankruptcy:
Error 1: Leaving off debts
You must include all debts on the bankruptcy documentation. Leaving any debts off means the ones you didn’t include can’t be discharged. It can also cause problems with the bankruptcy court because debts must be paid off using a specific order. Trying to pay certain debts outside of the bankruptcy court is illegal.
Error 2: Failing to declare all assets
All your assets must be declared. Trying to hide them can lead to major legal troubles. Bankruptcy fraud can easily turn into a criminal matter. Never think you can outsmart the court. Giving assets away in the period before you file can also lead to issues, so it’s best to avoid that.
Error 3: Acquiring new debts
Running up your credit cards right before you file or getting new lines of credit within the 90 days prior to filing can lead to those debts being classified as ineligible for bankruptcy protection. You should avoid making credit-based or frivolous purchases once you know you’re going to file.
Making sure you do everything necessary for your bankruptcy to be discharged is crucial. This can be a complex undertaking so having someone on your side who’s familiar can benefit you greatly. They can help you learn about your rights and the responsibilities you have.