Common Mistakes to Avoid When Filing For Bankruptcy

Many debtors file for bankruptcy when they are in a financial crisis. Applicants are supposed to put in a lot of effort and time for their applications to be considered. Bankruptcy is one of the complicated areas of the law. This is the main reason why you find some debtors making mistakes. Learning from the mistakes made by people during bankruptcy can help you in avoiding them.

Failure to File The Right Type of Bankruptcy

managing debts

The differences between the different forms of bankruptcy are outlined in chapter 7 and 13 bankruptcy. This can help you in choosing the most suitable types of bankruptcy depending on your situation. These chapters will also help you in knowing what you can accomplish with the different forms of bankruptcy. You should also learn the drawbacks and benefits of filing without a lawyer.

Filling For bankruptcy When It is Not Necessary

The following the factors that you need to consider when filing for bankruptcy.

  • Your expenses and income
  • Your circumstances
  • The total value of your property
  • Types of debts which you have

You should remember that some obligations cannot be eliminated not be discharged by insolvency. This is a complicated process that might even put some of your assets at risk. It is, therefore, important to ensure that insolvency is the perfect solution to the problems you are facing before filing your case.

Failure to Attend the Creditor’s Meeting

Individuals who are filing for bankruptcy should attend the meeting called by your creditors. The court will always send a notice asking you where and when the creditor’s meeting (341 hearing) was after filing your case. The court would dismiss your case if you did not attend the 341 hearing.

Completing and Filing the Wrong Forms

filing forms

If you have a plan of filing a case, then you are required to fill out lengthy forms. Apart from these schedules and forms, they are required to make sure that debtors are complete. You should also file the local forms of the bankruptcy courts. Individuals who file their cases without attorneys should make sure that they have obtained all the necessary forms and complete them accurately.

Failure to Follow The Local Procedures and Rules

Different courts have their own procedure and steps regarding the various steps that need to be followed by debtors when filing their cases. They should follow these rules to obtain a discharge. Failure to follow these rules can lead to dismissal of the debtor’s case or delay the insolvency process.