The bankruptcy process can be very confusing, especially since many people only go through it one time. That's why it's important to know what mistakes can be made when applying for bankruptcy, and tips for how to avoid them.
List All Your Debts
Part of filing for bankruptcy is that you must list the debts that you want to have discharged. Bankruptcy is not a blanket ruling that automatically makes those debts go away since you do have to list each and every one of them out. That's why it's so important to take the time to list your debts so that none are forgotten about. If you fail to list a debt and your bankruptcy is approved, you are not going to be able to go back and add the debt to your filing.
List All Your Assets
Part of creating your bankruptcy schedule is that you are supposed to list all of the assets that you own under a potential penalty of perjury. Neglecting to list specific assets can significantly impact your bankruptcy case. This includes vehicles, real estate, high-value assets, and things of that nature. You do not need to list every little thing, thankfully, just the items that could be liquidated to help pay off your debts. If it is discovered that you didn't list an asset, it could put your entire bankruptcy filing at risk of being denied.
Take All Required Classes
Part of your bankruptcy filing will be that you are required to take credit counseling classes, typically at the beginning and near the process. Taking these courses will give you a certificate that you will file with the court as proof that you took the course. Don't assume that you can avoid taking these courses and say that you did because not having the proper certification will cause your bankruptcy case to be delayed or denied.
Prepare For Your Bankruptcy Hearing
One of the benefits of working with a lawyer is that they are going to prepare you for your bankruptcy hearing. This is when creditors have the opportunity to ask you questions that you have to answer. If you've never gone through bankruptcy before, then you will have no idea about what line of questioning to expect. However, your lawyer can coach you through these questions by letting you know what will be asked and tell you how to respond. It will help the entire bankruptcy hearing go smoothly.
For more information about bankruptcy services, contact a local attorney near you.
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