Filing a Chapter 7 bankruptcy is not a simple or an easy process. It involves gathering and analyzing a large amount of financial and legal documentation. If every “T” isn’t crossed and every “i” dotted, it could have long standing implications, as well as, a dismissal of your bankruptcy petition where it would have otherwise been accepted. Because it is such an intricate process, there are many mistakes that people make when filing for this type of bankruptcy. In this article, we’ll take a closer look at common Chapter 7 bankruptcy mistakes that can be avoided.
Failing to Complete Forms
As already mentioned, the paperwork for filing bankruptcy needs to be filled out meticulously. If you don’t fill out the petition, schedules, statement of financial affairs, and other forms properly, it could mean a dismissal of your bankruptcy case or worse. Jail time and heavy fines await anyone who knowingly provides false information when filing for bankruptcy. A qualified bankruptcy attorney in California can ensure that your filing packet is complete and filled out properly.
Not Taking Advantage of Exemptions
Exemptions are state statutes and bankruptcy laws that allow you to keep your property. Each state is different in terms of property exemption and in some states, you can use either the state or federal exemptions. A Fairfield bankruptcy attorney will be able to navigate the exemptions so that you can retain the property that you wish to keep without worry of liquidation or your potential assets. In addition, they can inform you of any potential exposure of property that could be liquidated prior to filing and unknowingly running the risk of losing that property.
Failure to File Credit Counseling Certificates
Everyone who files Chapter 7 bankruptcy must go through a court approved credit counseling course within 180 days before filing bankruptcy. This is mandated by Congress and is to ensure that the bankruptcy process actually helps and you don’t find yourself needing bankruptcy again after your debts are discharged. If you fail to file this certificate or if you take a course that isn’t approved by the courts, it can mean a dismissal of your petition.
Not Getting an Attorney
Here’s the big one: you need an attorney. In fact, if you are working with a qualified bankruptcy attorney, then all these mistakes are easily avoided as you’ll have an expert working with you to ensure that your bankruptcy process is a success and you don’t miss an opportunity for a second chance with your financial future.
For more information, contact your Fairfield bankruptcy attorney at (707) 385-0422.