Personal bankruptcy is a very powerful way to rid yourself of overwhelming debt and secure the fresh financial start you need. But the process isn’t automatic. If you want debt relief, then you’re going to have to be proactive in seeking out bankruptcy protection and effectively navigating the process. All too often, though, bankruptcy petitioners make mistakes that put their relief in jeopardy.
Avoid these mistakes in your bankruptcy case
Although the bankruptcy process seems straightforward, it can be riddled with complications that can threaten your ability to secure the relief you need. These are some of the biggest mistakes that you’d want to to avoid:
- Choosing the wrong type of bankruptcy, which could prevent you from maximizing the relief that you receive.
- Transferring assets to friends and family members to remove those assets from bankruptcy proceedings.
- Repaying “debts” to family members and friends.
- Lying about the extent of your assets in your bankruptcy petition.
- Taking on large amounts of debt right before filing your bankruptcy petition.
- Failing to complete the debt counseling program that is required for successful completion of the bankruptcy process.
- Draining your retirement accounts to pay off dischargeable debts, thereby leaving you without the long-term financial stability you need.
- Waiting too long to file for bankruptcy.
Any of these mistakes can threaten the viability of your bankruptcy petition or unnecessarily drain your resources. That’s why it’s important to consult with your attorney before making any major moves in your bankruptcy case.
Are you ready for the next steps in your bankruptcy journey?
If so, then don’t hesitate to seek out the support, resources, and advocacy you might need. Only then can you confidently move through the process in a way that protects your long-term financial interests.