More than 1.1 million bankruptcy cases are filed in the U.S. each year, according to the United States Courts. If you’ve decided to go this route and take a new financial path, you’ll want to avoid a few common mistakes that could harm your case.
5 Mistakes to Avoid When Filing for Bankruptcy
It goes without saying that bankruptcy is not exactly pleasant; financial problems can cause stress, mar your record and leave you feeling shoddy. Therefore, it’s important to be honest in your proceedings, avoid common mistakes, and not to make the process more difficult than it has to be.
Here are five mistakes you’ll want to steer clear of when dealing with bankruptcy:
- Lying – Lies almost always will be discovered in a bankruptcy case, so always be up front about your assets and your income. Far too many people lie about how much money they have on hand or about their income, and it’ll only complicate matters. Lying means you run the risk of having your case dismissed and being barred from filing for those debts in the future.
- Leaving out cars – You must report everything, including all of the vehicles in your name. Many people fear losing their cars, but this isn’t necessarily the case. The best way to handle it is to be up front with the trustee and discuss your options.
- Overlooking income – All income must be reported. Yes, this even means that small part-time job you may have.
- Leaving out certain credit cards – Not reporting certain credit cards because you don’t want to “lose them” is another common mistake. Credit card companies will know you’ve filed, so don’t try to hide any. Instead, report them exactly as you should; you will, down the road, have an opportunity to obtain more credit, post-bankruptcy.
- Waiting until the last minute – Waiting until your home is in foreclosure or your wages are garnished may not be the best route. Instead, speak to a bankruptcy attorney early so you can better prepare a thorough bankruptcy petition.
An Attorney Can Help You Avoid Bankruptcy Mistakes
Our bankruptcy attorneys at Warren & Migliaccio can look over your case, explain your options to you, and help chart a path that will meet your needs during the bankruptcy process. For a free consultation, call (888) 584-9614 today.