Common Bankruptcy Mistakes

Filing for bankruptcy is not always an easy path, but it is essential to avoid inevitable common mistakes that many individuals have made in the past.

Mistake #1: Waiting too long to file

One of the main mistakes debtors make is waiting too long to speak with a bankruptcy attorney, opening their financial insolvency to further trouble. While they are aware of the serious situation that they are facing by carrying such debt issues, many people cannot successfully navigate a bankruptcy case start to finish alone. In most cases, debtors can save a significant amount of money if they discuss their problems with a Citrus Heights bankruptcy attorney sooner rather than later.

Mistake #2: Not choosing to file under the suitable chapter

It is crucial to file under the correct chapter of bankruptcy. You could cause a reverse in your debt relief while filing under the wrong chapter. Consult a trustworthy bankruptcy lawyer and obtain his or her feedback before filing under any chapter.

Chapter 13 allows you to keep all your assets while paying on a court-approved repayment plan over the next three to five years. This type is suitable for people behind on their mortgage payments and wishes to keep their home. Chapter 7 is quicker and usually easier, and the court will liquidate your non-exempt assets to pay your creditors and eliminate the rest of your qualifying debts.

Mistake #3: Incurring debt immediately before bankruptcy

If you begin the process of filing for bankruptcy or considering it as a serious option, it is not in your favor to start incurring more debt. It is necessary not to charge cards or take payday loans before filing. This may be seen as a fraudulent act, as you take loans without the intent to pay them back. Besides, it may be perceived as an obstacle to successfully completing your bankruptcy.

Mistake #4: Refusing to file bankruptcy as a solution to debt

Many debtors reject the solution of bankruptcy because of their fear of its consequences on their credit or other reasons. Knowing the facts about bankruptcy may clear up any prejudice holding you back. Many individuals are affected by the negative ideas propagated by the media. Remember, even if you have lost your assets, the bankruptcy solution can provide you a new beginning.

Consider hiring a Citrus Heights bankruptcy attorney to guide you around any pitfalls that could prevent your discharge.