Bankruptcy was designed to help good people having a hard time; people just like you struggling to make a life under an enormous and immovable burden of debt. By filing bankruptcy, consumers can get out of debt and obtain a fresh start, but to make it happen, petitioners have to adhere strictly to bankruptcy code and fulfill every step of the bankruptcy process.
Keep Your Bankruptcy Case Moving Smoothly: Avoid Common Mistakes
- Not Being Truthful About Your Financial Situation
- Leaving Out Information or Hiding Assets
- Not Listing Every Creditor
- Transferring Ownership of Property Before Filing
Why Would a Bankruptcy Filer Lie About Their Finances?
Sometimes people filing bankruptcy feel they need to hide their income or their assets. They do so out of fear that they will not qualify to file bankruptcy, but doing so could lead to the court dismissing your bankruptcy case entirely without discharging debts. Most bankruptcy filers can be completely honest and still qualify with many assets due to protections offered by bankruptcy exemptions.
Why Do Bankruptcy Filers Not Report Assets or Leave Out Information?
When filing bankruptcy, petitioners must report all income, outstanding loans, all assets of value, etc. Some may be tempted to “forget” to mention assets or loan details or the fact that they have a vehicle. Doing so could result in the loss of assets that were not properly disclosed in the bankruptcy filing.
Why Do Bankruptcy Filers Not Include All Creditors in their Filing?
Your bankruptcy attorney will probably refer to your creditors as “ALL” your creditors hundreds of times. This phrase is often repeated because every creditor must be listed on the list of creditors – even creditors with a zero balance. Listing all creditors as required will save major headaches later. Attempting to hide zero balance accounts or certain credit accounts could negatively affect your entire case. If you have an account you would like to attempt to maintain post-bankruptcy, discuss the option with your bankruptcy attorney. Do not try to hide the account’s existence from your attorney or the bankruptcy court.
What is the Danger of Transferring Property Ownership Before Filing Bankruptcy?
Sometimes bankruptcy filers think they can protect or “hide” certain assets by transferring ownership into someone else’s name before filing bankruptcy. Hiding assets can create a lot of trouble if the bankruptcy trustee discovers the hidden asset. Instead of putting your case in danger, discuss legal methods of protecting valuable assets with your bankruptcy attorney.
What Are Some Other Common Mistakes Made Before Filing Bankruptcy?
- Bankruptcy petitioners considering filing bankruptcy should also avoid the following common mistakes:
- Failing to disclose pending lawsuits.
- Repaying friends or family members significant sums before filing.
- Running up balances on credit card accounts before filing.
Do you have questions about bankruptcy law and common mistakes to avoid before filing bankruptcy? The experienced Tennessee and Georgia bankruptcy attorneys at Kenneth C. Rannick P.C. can help. We help good people through bad times every day, and we can help you, too.