If you’ve decided to meet with a bankruptcy lawyer about your stressful financial condition, you just made the right decision as your attorney will guide you through, to make the process more convince and efficient.
You need to avoid these Consumer Bankruptcy Mistakes if you want your case to run as smoothly as possible. If not, you could lose the benefit of the discharge you want to obtain. BY these, you could be fined and sent to federal prison.
7 Consumer Bankruptcy Mistakes You Should Avoid
1. Charge up your credit cards before filling a bankruptcy.
In bankruptcy, you may not be able to discharge items defined as luxury goods or services if you incurred the charges within a short time before filing your case.
2. Sign your paperwork without reviewing it
You have to file a lot of paperwork which contain your details of your assets, debts, income and expenses. It is requird that you sign these schedules and other documents under penalty of perjury. So, ensure you review your schedules before signing them. If not, it means that if you lie, you can lose your discharge.
3. Giving your attorney false information
When meeting with your attorney, ensure you did not hide information about your financial dealings, assets, debts, income or expenses.
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4. Conceal assets.
This is the most prosecuted bankruptcy crime. If you fail to disclose assets, or transfer them away before or during the bankruptcy with the intent of preventing your creditors from satisfaction, or make them difficult for the trustee to access, you can go to jail or be fined.
5. Bribe a trustee, a judge or a court official.
Do not try in your life, as this may land you in jail.
6. Ignore your credit report after your discharge.
Do not assume that your credit reports are abysmal after bankruptcy. You have to be monitoring your reports to ensure your creditors report their debts correctly. This will go a long way to ensure that your credit report, and as well your credit score, are very accurate.
7. Forget to take your debtor education course.
Every debtor in a Chapter 7 or a Chapter 13 case is required to take a debtor education course before the discharge is issued. So, if you fail to take the course, the court will close your case without the discharge. Furthermore, you will be required to pay a fee to the court and probably an extra fee to your attorney to have the case reopened so that you can take the course and receive your discharge.