3 Tips for a Successful Bankruptcy

TRI Writer • August 3, 2022

Filing bankruptcy is not a joke, and it’s not a decision you make in passing. The benefits of bankruptcy are long-lasting and essential to many consumers stuck in impossible financial situations. However, the consequences of bankruptcy are also not easily dismissed. If you are in an impossible financial crisis and can’t see a way out other than bankruptcy, make sure you get the most out of the situation with these tips for a successful bankruptcy case.

3 Tips for a Successful Bankruptcy Filing:

  • Be Honest
  • Stay Informed
  • Follow Your Attorney’s Counsel

The Importance of Being Honest During Bankruptcy:

During a bankruptcy filing, it’s essential to be honest with yourself. It’s equally important that you’re also honest with your attorney, the bankruptcy court, and others involved in the bankruptcy. Full disclosure of your assets and liabilities in the statement of financial affairs you provide your attorney is an essential first step in any successful bankruptcy case. With a clear (and honest) picture of your financial situation, your experienced bankruptcy attorney can provide you with the best-recommended course of action, help you understand your rights and obligations, and how the bankruptcy law applies in your specific situation. Honesty continues to be essential throughout the entire bankruptcy case, not only to help the case proceed smoothly but to avoid the consequences of dishonesty during bankruptcy. Hiding assets, “forgetting to include assets” in bankruptcy, lying to the bankruptcy judge, etc., can all have serious consequences. No one wants to see their bankruptcy case dismissed, and no one wants to face the penalties for perjury.

The Importance of Being Informed During Bankruptcy:

Before diving into a bankruptcy filing, do your research. Know the differences between Chapter 7 and Chapter 13 bankruptcy. Consider how each would affect your life and suit your lifestyle. If you’d like to learn more about bankruptcy and aren’t sure where to start, consider seeking info from the American Bankruptcy Institute (ABI) or the National Association of Consumer Bankruptcy Attorneys (NACBA). Both are reputable resources for general information. Follow up the general info by seeking the opinion of an experienced local attorney. While bankruptcy law is federal, each jurisdiction is different, so judges may have local rules, and the trustees may use different procedures in cases under their jurisdiction.

Why Is it So Important to Listen to Your Attorney’s Advice During Bankruptcy?

Being honest and staying informed contribute significantly to a successful bankruptcy case, but the final element is a local bankruptcy attorney. However, working with an attorney isn’t very helpful unless you follow your attorney’s counsel. Bankruptcy law is very specific. The bankruptcy process includes obstacles and sticky spots that must be avoided or efficiently managed. Timing is often essential, and seemingly pointless paperwork or actions may be mandatory requirements that mean the difference between a discharge of debt and a dismissal of the bankruptcy case. If you aren’t sure about something, don’t just assume it’s not essential. Just ask your attorney for clarification. If your bankruptcy attorney requested it, it’s safer to assume they did so for a reason.

If you are filing bankruptcy in Georgia or Tennessee and have questions about the bankruptcy process, contact Kenneth C. Rannick P.C., Tennessee, and Georgia bankruptcy attorney. We help good people through bad times.

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