Tuesday, April 5, 2016

What Not to Do When Filing for Bankruptcy

As people say, bad things often happen to good people. Nowhere is this truer than when people are forced to file for bankruptcy after a serious illness or divorce. The great thing about bankruptcy is that it will pardon a petitioner of most of the debt they owe.

That being said, a bankruptcy filing is still a legal process, and as such, it requires a petitioner to accomplish all steps accurately and avoid these missteps so that the court won’t dismiss his or her plea.

Failing to Declare All Income Sources

An important part of the bankruptcy process involves declaring all your income sources to demonstrate that you do not have the means to pay off creditors. This means that if your child works part time after school, his or her income should be declared in your filing, too.

Filing for the Wrong Type of Bankruptcy

In general, Chapter 7 bankruptcy involves liquidating your unsecured debt. This means for the most part, you’re off the hook if your petition is approved. Chapter 13 bankruptcy, however, reorganizes your debt so that you still pay off at least part of the total amount owed.

Not Completing the Proper Paperwork

You’d be surprised at how many bankruptcy filings are thrown out because the petitioner didn’t accomplish the proper paperwork. If you don’t have a bankruptcy lawyer, you’ll be in charge of securing, filling out, and submitting all the forms required for your case to be heard in court.

Bankruptcy may be a long and winding journey, but don’t lose hope. Think of the experience not as a downfall but as an opportunity to start again with a clean slate.

No comments:

Post a Comment