15 SepCommon Mistakes To Avoid In A Bankruptcy Case
When filing a bankruptcy case under chapter 7 or chapter 13, you must avoid the common mistakes mentioned below.
In the website doylesalewski.ca, you can visit their Bankruptcy page to know about the FAQ on a bankruptcy case.
You must reveal all your assets, income and expenses. The automatic stay is the backbone of a bankruptcy case, but the bankruptcy body treats creditors, based on the debt type owned by them and the priority debt payments under the bankruptcy law. It is hard to treat the parties fairly without disclosing your financial status. Neither the bankruptcy trustee nor the bankruptcy court is responsible for finding out your asset details. You are responsible for telling honestly about your income details, expenses, assets and the amount you must spend to discharge the debts.
You must remember that it is not advisable to seek a loan or early withdrawal of your retirement account. Most of the people commit the mistake of borrowing the entire money of their retirement account or withdrawing the account to pay their debts. You must analyze the benefits and pitfalls before choosing either to borrow or withdraw your retirement account.
You must not make the simple transfer of your assets like a car to your friend or relative before filing the bankruptcy case. This transfer makes your bankruptcy case even more complex. You must be honest in revealing all your assets and transferring your assets in this way to hide or minimize your asset count will give only complications to your bankruptcy case.
The most difficult thing in a consumer bankruptcy case is the credit close problem when you filing the bankruptcy case. It is because your recent credit situation is evident that you are in a tough position to pay back your debts. If you are not in a position to pay your current debts then how will you manage and pay the additional debts? You must avoid getting more debts when you cannot pay a debt to your creditors and find it hard to pay your credit card bills.
Before filing a bankruptcy case, creating a cash advance results in a big problem. It is similar to the problem you faced in the above case. The creditors think it as a fraudulent activity.
If you are self-employed then you must review your income and expenses details every six months before filing the bankruptcy case. Though it is a time-consuming process, it is very much required to do before filing the case.
When filing the bankruptcy case, you must file all your tax returns for the previous and present year as requested. You must also need to analyze your monthly expenses before filing the case. When fixing an initial free consultation with a bankruptcy attorney you must find out how you are spending on every month and the expenses you made each month. You can also evaluate your bank account statement to get the clear picture.
You don’t try to handle the case on your own. Hiring an experienced bankruptcy lawyer helps to win in your case. Your attorney will take the entire responsibility of case starting from filing the case in the court till the completion of the case.