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Mistakes to Avoid When Going Through the Bankruptcy Process

Posted on in Bankruptcy

Mistakes to Avoid When Going Through the Bankruptcy Process

Bankruptcy can be confusing. When you are trying to work through the stress and confusion of the bankruptcy process while balancing your job and family commitments, you can easily become overwhelmed and prone to making mistakes. These mistakes can only hurt you more, potentially invalidating your bankruptcy claim or forcing you to take extra time and money to repair them.

The best way to avoid making these mistakes is to familiarize yourself with them. Below are a few mistakes that individuals working through the Chapter 7 or Chapter 13 bankruptcy process can make.
Not Providing the Trustee with Your Required Documents

When you file for bankruptcy, your case is assigned to a court-appointed trustee who oversees the process. In order to effectively work with you and the court to complete your bankruptcy, the trustee needs to have copies of all of your relevant financial materials. These include your pay stubs, your tax returns, and if you are self-employed, documentation of your gains and losses. He or she also needs a copy of your bankruptcy petition. Your trustee must have these documents at least seven days prior to your bankruptcy hearing.

Not Disclosing All of your Assets

In order to successfully complete the bankruptcy process, you must be fully transparent about all of your assets and their value. Failing to disclose your assets to your trustee and your attorney can result in your case being dismissed.

Moving Assets Prior to Filing

Similar to the mistake described above, moving your assets to another party's ownership to avoid having them liquidated in the bankruptcy process is more likely to hurt you than it is to help you. This is a type of fraud and if it is detected, your trustee can undo any property transfers you made within the two years leading up to your filing.

Not Attending Your Required Hearings or your Second Credit Counseling Course

You need to take an active role in the bankruptcy process. This means that before you can file, you must take a credit counseling course. You must also appear at any collection hearing brought against you, even after you have filed for bankruptcy, as well as any hearing related to the bankruptcy itself. In order to complete the process, you must take a second credit counseling course. Failure to appear where you are needed to appear can result in your case being dismissed.

Work with an Experienced Buffalo Grove Bankruptcy Lawyer

If you are considering filing for bankruptcy, first speak with an experienced Buffalo Grove bankruptcy lawyer. Our team at Newland & Newland, L.L.P. is equipped to help you work through the bankruptcy process in the most stress-free manner possible. Avoid costly and time-consuming mistakes by working with a member of our team. To set up your free legal consultation with us, contact our firm. We serve clients in the North Chicago, Fox Lake, Zion, Winthrop Harbor, Waukegan areas from out our office located in the prestigious 180 North LaSalle street building in Chicago.

(photo courtesy of Dodgerton Skillhaus)

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