Many consumers are forced to admit that their financial situation is beyond their control. You may never be able to pay off your debts because of interest, penalties, fees, and more. Additionally, you may be facing dire punitive actions from creditors that can threaten your job, your home, your vehicle, and more. When the only action that makes sense is to file chapter 7 bankruptcy, it pays to make the process as smooth and worry-free as possible. Read on and avoid a few tricky problems when you file.
With chapter 7, it's possible, but rare, to lose personal property when you file chapter 7. What filers should avoid, however, is failing to list all their assets when they file. Your bankruptcy attorney can provide you with some valuable advice about your chances of surrendering property. They can help you avoid losing property the legal way. Trustees have access to several government databases that provide information on financial transactions. If you are found to be purposely hiding assets, your case can be dismissed with prejudice which will prevent you from receiving the relief you need for some time.
List Those Creditors
The whole idea of bankruptcy is to have debts dismissed. However, creditors not listed on your bankruptcy paperwork won't be included in the dismissal. Filers are required to list everyone they owe money to, even personal loans from friends and debts you don't want to make known. That is because the trustee wants to prevent you from "favoring" one creditor over others. To make sure you don't leave out a creditor, obtain a credit report for reference.
Using Credit Cards with Abandon
It occurs to nearly everyone considering a chapter 7 bankruptcy but that doesn't mean you should act on that thought. Using credit cards in the weeks before you file chapter 7 can get you in trouble with the creditors. You may use the cards only if you need to for food, bills, car repairs, and other important reasons. However, a trip to Disney and other frivolous charges could be denied and delay your bankruptcy process.
Thinking You Can Do It Yourself
Anyone can file bankruptcy by filling out a few forms so why not do it yourself? However, there are many lengthy and confusing forms that you would need to fill out in the process. Lawyers are educated and experienced with these which can help you save time when you hire them to do the work for you. You won't necessarily be saving any money by doing it all by yourself when the bankruptcy trustee dismisses your case because of errors. The filing fee is nonrefundable so get a lawyer to help you with the paperwork, deal with issues that arise, and be there for you at the creditor's meeting.
To learn more, get in touch with a firm like McManus & Associates.
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