Bankruptcy can be a new start for many who have had a series of countless debts and creditors standing on their neck. While filing for bankruptcy can be a great game-changer for the better, it can also lead to very disastrous consequences. This is why you should ensure that when filing your bankruptcy, some mistakes mustn’t be found in your case.
Check here to get a bankruptcy lawyer Kingsport.
Here are some mistakes you should avoid when filing for your bankruptcy.
Choosing The Wrong Bankruptcy
Filing your case under a wrong bankruptcy is the same as leaving your debts to chance.
Debtors have the choice of picking between three different types of bankruptcy which are Chapter 7, Chapter 11, and Chapter 13. All three types have different requirements and specific needs they cater for.
Under Chapter 7, your nonexempt assets will be liquidated. And the proceeds will be used to settle your creditors. While for Chapters 11 and 13, you will be put under a payment plan with the directive of paying back your debts within 3 to 5 years.
Doing It Yourself
Many people think they are wise and could do it themselves, well they sure can but then a slight mistake in their case might just be fatal. It is advisable to always take the service of a bankruptcy attorney to further the course of your case.
As with every legal case involving court proceedings, there are some technicalities that only legal personnel (not even paralegals) can be aware of. So to avoid some costly mistake when filing, hire the service of a bankruptcy attorney.
Going for Bankruptcy Headlong
Many people think bankruptcy might be the solution to all their myriads of debt, but then, it is not always so for everyone.
Some factors need to be considered before filing for bankruptcy in determining whether the same is the best for you. Working with a bankruptcy attorney will ensure this becomes a smooth ride and if there are other avenues available, you will be directed to the same.
Your financial situation is different from others and such might require a different solution.
Hiring An Attorney Who Specializes In Another Branch Of The Law
Do not assume because you saw an attorney-at-law at the entrance of their office, that they are suitable for your case. You are in for your surprise.
There are different branches in law and also there are specialized attorneys for those branches. You should not hire a Real Estate attorney to work on your bankruptcy case. It will end badly.
The law is not static, it changes every day and it will be in your best interest to hire the service of someone who is up to date and understands the intricacies of the law about your case, which is bankruptcy.
Withholding Information
Never make the mistake of withholding information from your attorneys. This time is not for the secrecy of any sort, filing for bankruptcy demands full disclosure of every information about your debts, your assets, and your creditors.
Failure to fully disclose this will harm your case and if the court could stumble on any deliberately hidden information, you might be charged with criminal bankruptcy fraud charges.