Filing for bankruptcy can be a tremendously complex process. Say or do the wrong thing and instead of finding freedom from debt, you could end up in trouble with the law. By taking the time to properly prepare and organize your case, you can work to see that your experience goes as smoothly as possible. Every case will be unique and if you have questions about your specific situation, the attorneys at our firm are only a phone call away. Below, our blog outlines five common bankruptcy mistakes.
- Providing incomplete or false information: When you file for bankruptcy, you are required to list precise and accurate information about every debt, asset, and expense that is under your name. Accidently providing incomplete information during this process can lead to financial headaches down the road. If it is found that you purposely and knowingly provided false information, you may be facing criminal charges. Working with an attorney at each step of the process can help to ensure that you are aware of what information may be needed.
- Incurring new debt: Making the choice to file for bankruptcy does not give you free reign to incur more debt. The 3 months prior to filing for bankruptcy are typically examined closely for this type of action. Any outstanding debt, loans, or cash advances that you take out may not qualify for discharge through any form of bankruptcy. For this reason, it is good to begin planning months in advance.
- Hiding assets: Just as incurring new debt without the intention to pay it back may be viewed as fraud, attempting to hide assets can also land you in legal trouble. At the least, if your creditors discover that you sold, transferred, or moved assets for “safe keeping”, those assets may be excluded from the financial protections afforded by bankruptcy.
- Waiting too long: If you find yourself buried in monthly payments with no feasible way to pay off debts, waiting to file for bankruptcy may only allow your situation to get worse. By the time that some debtors file for bankruptcy, substantial damage has already been done. The sooner you take legal action, the sooner you can stop the accumulation of debt and secure a new financial start.
- Failing to complete credit counseling: While failing to complete any part of the bankruptcy process can result in severe consequences, individuals often overlook the second portion of debt and credit counseling. This is a vital step as your debts cannot be fully discharged until all counseling has been completed.
Bankruptcy Attorneys in Birmingham, Alabama
If you are searching for a debt-relief solution, filing for bankruptcy can help you to get your financial future back on track. However, this is not a process that should be taken lightly and it is vital to consult with an experienced attorney before making the choice to file. To discover if bankruptcy may be right for you, contact Jaffe & Erdberg, P.C. and speak with our firm in a FREE consultation. Our Birmingham bankruptcy attorneys possess decades of legal experience and have helped clients in your situation to find freedom from debt.
Call (205) 333-3333 and find the answers to your bankruptcy questions.