3 Mistakes To Avoid When Filing Bankruptcy

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When you file for bankruptcy, it's a very big deal. You are taking the debt you have and asking to have it lessened or removed completely. This is a big ask and should only be filed by those who really need it. Bankruptcy should not be treated as a get out of jail free card that you abuse every seven years. This is something that should be taken very seriously. When you file for your bankruptcy, there are mistakes you may make that could delay your bankruptcy or have your bankruptcy dismissed altogether.

1. Not Reporting All Of Your Assets

Part of your bankruptcy filing is including all of your assets. You may be asked to exhaust all of your assets in order to pay off the debts you owe. If you lie about what assets you have, you are lying to the court and could cause your bankruptcy to be dismissed. If your bankruptcy is dismissed, you may have to wait six months or longer to be able to file for bankruptcy again. Don't lie to the court or to your attorney--list all of the assets that you own.

2. Continuing To Spend Money

Once you file for bankruptcy, you should begin to reign in your spending. You shouldn't be spending money on credit cards that you have included in your bankruptcy. If you continue to spend money on credit cards, you may be responsible for those purchases. Stop spending your money and start saving it or use it to pay some of your bills instead. Don't spend money on your credit card that is going to get you in even more debt.

3. Lying About Income

If you have other sources of income that didn't report it to your bankruptcy attorney or the bankruptcy trustee, you could end up in some hot water. Your bankruptcy could get dismissed, or you could be told that you are not able to file for six months or longer. The extra income may make you not eligible to even file for bankruptcy. All sources of income should be reported to your attorney and on your bankruptcy.

If you are attempting to file for bankruptcy, you need to follow the rules. Don't lie about income, debts, or assets, and stop using your credit cards. Making any of these mistakes could lead to dismissal of your bankruptcy and a delay of your bankruptcy filing. It will also cost you more money to file again. Talk to your bankruptcy law attorney about what other mistakes to avoid.