for bankruptcy, you should work hand in hand with your attorney to learn about
the entire process to make it stress-free. For your case to run smoothly, you
must avoid some costly mistakes that can cause serious repercussions. Avoiding the following mistakes can keep you from being on the wrong
side of the law.
Signing documents without reviewing them
You have to
file a lot of documents in court detailing all your debts, assets, expenses and
income when filing for bankruptcy. You will have to sign other documents issued
by the court. Take time to review each document to avoid giving inaccurate
information. Lying can make you lose your discharge or even future assets.
If you hire
a bankruptcy attorney, you have to disclose all the relevant information
regarding your assets while filing for bankruptcy. Make sure they have all the
relevant documents, facts and figures to help you ease the process. Withholding
certain information can be taken as a breach of the law and can land you into
serious problems. Apart from your lawyer, your trustee may still need
additional details. Do not ignore their questions or obstruct them from doing
their jobs since you can be prosecuted for such.
Failing to meet with your creditors
debtor, you should prioritize meeting with creditors. If you get caught up and
cannot attend the meeting in person, inform your lawyer beforehand so that they
can represent you. Some creditors allow you to participate in the meeting
through telephone if you are out of the country or away for work. Do not
however make it a habit of not attending these meetings.
This is a
common mistake that most people who file for bankruptcy get prosecuted for.
Concealing assets when filing for bankruptcy is a crime. If you hide some of
your assets or organize to transfer them to someone else during the process,
you can receive a fine for it or even get detained.
Filing different cases
for different ways to prevent their property from being repossessed. It is,
however, a mistake to file multiple cases since the court works with limits.
For instance, a person may file for bankruptcy to prevent creditors from
foreclosing their home. The first time, the court can consider preventing
creditors from repossessing the house. If the person fails to make repayments
and faces foreclosure again, they may file for bankruptcy for the second time.
In this case, the court may fail to consider the person’s automatic stay
Neglecting your debtor education course
If you are
a debtor with a case in chapter 13 or 7, you are supposed to take an education
course before the court issues a discharge. Failure to take the course can make
the court dismiss your case without issuing the discharge. To reopen the case,
you may incur extra fees of paying your attorney and also the court. To avoid
this, make sure you take the course to get your discharge.