Filing for bankruptcy can put an end to your credit problems. It can make your creditors stop calling and harassing you, and it can free up resources for you to pay essential bills like your rent or mortgage and your utility bill. Once you decide to file for bankruptcy, you probably want to do it as fast as possible and start reaping the benefits.
But if you aren’t careful, you can unintentionally do something that will delay your bankruptcy from being finalized. That will prolong your problems. It’s important that you are aware of the things that can cause problems so that you can avoid them. Here are five unfortunate circumstances that can stall your Gilbert, AZ bankruptcy:
Failing to Disclose Everything
You may decide to leave out an account on your bankruptcy. For example, you may still have a credit card that hasn’t been maxed out or canceled, and you may want to keep it so you can have it in case of emergency. Or you may leave an asset off your list, thinking that you can save it from collection. However, failing to disclose all of your debts and all of your assets can delay your bankruptcy filing and land you in legal trouble for fraud.
If you have any questions about what debts you have, check your credit report. If you have any questions about which debts to include or what assets you might be able to keep, ask your bankruptcy lawyer.
Failing to File a Tax Return
You may not file a tax return if you don’t have the money for an accountant or you don’t have the money you think you will owe. However, failing to file a tax return can cause you a lot of legal troubles, and it will bring your bankruptcy proceedings to a stop.
If you have an unfiled tax return, talk to an accountant or a tax attorney to determine the best course of action for filing it with the least penalties. If you are worried about paying the money you owe, you may be able to set up a repayment plan. You won’t be able to discharge the debt in your bankruptcy.
Continuing to Use Credit Cards
Some people will continue spending up their credit cards when they know they are filing for bankruptcy because they think that the charges will be written off with the rest of their debt. However, that behavior will be ruled fraud by the courts. You must cease using your credit cards when you file for bankruptcy.
Do not try to open any new lines of credit when you file for bankruptcy, either. You can’t convince the courts that you’re unable to pay your debts when you are opening up new lines of credit or spending more money.
Failing to Get Counseling
You are required to get credit counseling when you file for bankruptcy, as well as to attend and finish a course on financial education. Completing this education is a part of the bankruptcy process, just like filing the paperwork and attending the trustee meeting. If you don’t finish the education, your bankruptcy case will not be able to move forward. Just finish the course and counseling so you can get them out of the way as quickly as possible.
Failing to Get an Attorney
Filing for bankruptcy is a complex process, and you can easily make mistakes and jeopardize your case if you try to handle it yourself. By hiring a Gilbert bankruptcy lawyer, you ensure that every step of the process is completed accurately and that you are protecting your rights. Working with an experienced attorney can also help you understand the process better and what steps you can take for success.
Don’t let poor choices or a lack of information delay your bankruptcy filing or keep you from getting the debt relief you need. Work with a Gilbert bankruptcy attorney and follow all the right steps to ensure the success of your bankruptcy filing.
Gilbert Bankruptcy Lawyers can help you if you are thinking of filing for Chapter 7 or Chapter 13 bankruptcy. We represent both individual clients and businesses. We’ll help you analyze your financial situation and then give you advice about the best way to free yourself of debt. Our attorneys have years of experience helping clients just like you, and we offer affordable services. Call us in Gilbert today to get a free consultation.
Gilbert Bankruptcy Lawyers