Filing for Chapter 13 bankruptcy can be a strategic move to regain control of your finances. However, it is crucial not to fall prey to common pitfalls that could jeopardize your case.
Here are four crucial errors to avoid during the Chapter 13 bankruptcy process.
Not disclosing all assets and debts
One of the most critical mistakes is not fully disclosing your assets and debts. Connecticut law requires complete transparency in Chapter 13 bankruptcies. Omitting any information can lead to the court dismissal of your case or even bankruptcy fraud allegations.
Missing or skipping payments
Once your repayment plan is approved, making all required payments when due is vital. Missing or even delaying payments can result in the dismissal of your bankruptcy, leaving you vulnerable to creditors. Ensure you have a reliable system in place to keep track of your payment schedule.
Incurring new debt
Taking on new debt during your Chapter 13 repayment period can complicate your case. Connecticut courts view new debt as a sign of financial irresponsibility, and they can decide that dismissing your case is warranted. Avoid new credit card charges or loans unless necessary.
Ignoring court orders and deadlines
Failing to comply with court orders or missing mandatory deadlines can severely impact your bankruptcy case. Connecticut courts are strict about adherence to schedules and requirements. Always stay informed about your obligations and meet all deadlines promptly.
Going through a Chapter 13 bankruptcy without legal representation can be risky. Connecticut’s bankruptcy laws are complex. Having experienced legal guidance can help you avoid these and other mistakes and increase your chances of a successful Chapter 13 bankruptcy and a fresh financial start.