If you are planning to file for bankruptcy, then you need to prepare yourself for the road ahead. There are many preparations that you need to make before you can successfully file, but just as importantly, there are some things not to do, lest they affect your bankruptcy case in the long run. Follow these tips, and you will be set for smooth sailing.
Do not give your bankruptcy lawyer dishonest or false information
Your bankruptcy attorney is there to help you. They understand that filing for bankruptcy can be a hard decision, but they deserve to know everything they can. This means full disclosure when it comes to your assets, debts, income, and financial history. If you knowingly lie about your finances or withhold information, then you could be subject to criminal persecution.
Get more in debt
You need to stop your spending the minute you decide to file for bankruptcy. If you do not, then the creditors can potentially deny your claims to liquidize all the debts owed to them. If you rack up more debt within 70 to 90 days of filing, then you can be persecuted for fraud, which is the action of taking out a loan with the intention of not paying it back. If you have any questions about what to do, just contact your bankruptcy attorney and they will give you advice.
Choose the wrong type of filing without thinking of the consequences
There are three main types of bankruptcy: Chapter 7, 11, and 13. Each comes with its own pros and cons, but it’s crucial to understand the differences, and choose the most appropriate path for your situation. If you choose incorrectly. you can suffer long-term effects.
For example, takef Chapter 7. It costs $306 to file, takes about six months to complete, and stays on your credit report for 10 years after it is arranged. Think long and hard about what you are about to do, because while filing for bankruptcy can be a great solution to many people’s financial hardships, it’s not something to be entered into lightly. Again, your bankruptcy attorney will help guide you in this choice.
Move your assets
Do not be tempted to move any of your assets to a different bank or another person’s name for safekeeping. If you have already claimed those assets, then you can be criminally penalized if the courts cannot locate them at the time of the hearing.
In need of financial advice from a bankruptcy lawyer? Contact the Law Offices at Charles Huber today.