Filing for Chapter 13 bankruptcy can solve many financial problems. But it's also easy to make a mistake when filing that slows you down and makes it difficult for you to improve your finances.
Here are a handful of Chapter 13 bankruptcy mistakes that have plagued many people before you:
- Delaying the receipt of a credit counseling certificate. If you want to file for Chapter 13 bankruptcy, you need to first complete a credit counseling course.
- Hiding assets from the court. You must be open and scrupulously honest regarding your financial situation, which means never hiding anything from the court.
- Running up more debt and planning to eliminate it through bankruptcy.
- Transferring assets before applying for Chapter 13 bankruptcy, with the intention of hiding them from the court.
- Forgetting to file all the necessary paperwork.
There is more paperwork involved in a bankruptcy than most people realize, so you need to start the process as soon as possible. For example, with Chapter 13 bankruptcies, you'll need to particularly focus on the repayment plan.
These are just a few of the more common Chapter 13 bankruptcy mistakes. As you begin the bankruptcy process, you may encounter other stumbling blocks to fiscal freedom.
With so much to think about, you should give yourself enough time to work through all of the finer details. Along with this, learn more about your legal rights, as you always want to make the choices that are in your best interests. When you have the right knowledge, it's much easier to avoid mistakes that could ultimately cause you more trouble.
Source: All Business, "13 Mistakes to Avoid When Filing Chapter 13 Bankruptcy," Brandon Davenport, accessed Dec. 18, 2017