Common Mistakes to Avoid During a Chapter 13 Bankruptcy Case
Making the decision to file for Chapter 13 bankruptcy may be your best option to overcome crippling debt. While you may not get out of paying your debts, you can work through the legal process of creating a reasonable payment plan for creditors that allows you to keep some assets.
However, you’ll first need to navigate your way through a complex process that includes following all of the bankruptcy laws. Being aware of these common mistakes helps you prep for building a stronger financial future.
Forgetting Essential Information
As with any legal case, you never want to be accused of misrepresenting information. At best, leaving out assets or income could cause the case to be dismissed. At worst, you could face criminal charges for failing to respect the legal system.
Although you might consider yourself an honest person, it’s still easy to leave out information when your finances are complicated. Double-checking to make sure you’ve disclosed all of your assets and income, including cryptocurrency and rarely used bank accounts, helps you avoid looking dishonest.
Missing Deadlines and Not Following Court Orders
Bankruptcy cases must go through specific processes to reach an agreement with the creditors. For instance, you can expect to be required to submit specific documents within a defined time frame.
You may also need to attend a meeting with your creditors and respond to motions regarding your case. In many cases, people who file for bankruptcy are also required to attend financial education classes within a specific timeline. Having a competent bankruptcy lawyer handling the details of your case makes it easier to avoid missing essential deadlines.
Skipping Payments
Although bankruptcy may dramatically reduce some of your debt, you’ll still likely need to fulfill your obligation to make payments to creditors. If you don’t make payments on time, then you could face having the decision be reversed.
After you’ve come all this way, the last thing you want to do is see your original debt restored. Once there is a agreement regarding your case, make sure to comply with all of the necessary payment schedules.
Failing to Seek Professional Legal Guidance
When you’re filing for bankruptcy, it’s important to have someone by your side who can explain all of the legal aspects of your case. For instance, a Chapter 13 bankruptcy lawyer can make sure that you disclose all of your assets to prevent questions down the road.
You can also rely on your attorney to explain the final court orders and make sure you know what is expected following the outcome of your case. Knowing what to do from start to finish helps you avoid making an accidental mistake.
Facing a bankruptcy case isn’t easy, but this might be your best option for working toward better financial security. Don’t leave your financial standing up to chance. DeLuca & Associates Bankruptcy Law is available to walk you through the process of managing your case, and we’ll help you avoid making costly mistakes that could impact your future.