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Bankruptcy Mistakes To Watch Out For

Chapter 13 Bankruptcy Lawyer

Filing for bankruptcy is a decision no one wants to make. When debt becomes too large and overwhelming to pay off or manage on your own, it may warrant the help of a skilled lawyer to come to your aid. If you have many types of secured or unsecured debt, bankruptcy may be the most sensible option that will help you obtain a better financial standing. However, too many people who do decide to file for bankruptcy make mistakes that can be easily avoided. Be aware of some of the most common mistakes associated with bankruptcy.

Not doing research

When you are filing for bankruptcy, doing proper research is essential so that you understand what you are getting into. When you are making a decision as consequential as declaring bankruptcy, you want to make sure that you have all your facts straight before committing to it. If you file for bankruptcy, what specific outcomes will you expect? If only a portion of your total debt is eliminated, will it help you pay off your debt? If you have additional questions, you can turn to a knowledgeable bankruptcy lawyer like one from Therman Law Offices, LTD and they will be able to give you more details specific to your situation.

Assuming your debt will be discharged

While filing for bankruptcy allows you to get rid of debt, it has its limits. When you have a large amount of debt that you need to pay off, it is critical that you do not make any assumptions about which debt will be erased. Not all types of debt will be erased if you file for bankruptcy. Just because you may be eligible for bankruptcy does not mean that all of your debt will be wiped away, so clarify which types of debt will actually be impacted.

Using your credit card too much 

When you file for bankruptcy, do not think that it gives you free reign to use your credit card however you like. Your spending habits before and during the filing process will be closely monitored, so you should be careful about what purchases you make. If the bank notices that you are using your credit card frivolously, they may take action so that your credit card bills will not be eligible for discharge.

Making paperwork mistakes

Bankruptcy is a lengthy process that comes with a lot of legal paperwork. It is critical to keep track of all of your financial records and legal documents. Any issue, big or small, can cause delays and only slow down how your bankruptcy case is processed or cause your case to be dismissed. Organize all of your paperwork and fill them out carefully so that they are free of errors. If you need assistance completing your paperwork, contact a lawyer and they will be able to guide you.

You do not need to go through the bankruptcy process alone, and if you are still making a decision, you can rely on a lawyer for assistance. It is important that you are aware of your options regarding debt relief. To find out more information about what a top-rated and competent lawyer who works on bankruptcy cases can do for you, connect with one right away by setting up an appointment as soon as possible.