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.
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