Posted on: 16 February 2016Share
Making the decision to file for bankruptcy is one that shouldn't be taken lightly. Bankruptcy can eliminate almost all of your unsecured debt and leave you with a clean slate. This can be huge for someone who is struggling to make ends meet and can't seem to get ahead of their bills. Instead of feeling like you can never get out of debt, you can file for bankruptcy and put an end to your financial troubles. However, there are a few things you don't want to do in your bankruptcy case. Watch out for these top three mistakes.
Picking and choosing your debts.
Some people think that they can choose which debts to include in their bankruptcy case and which ones to omit. That isn't the case. You have to include all of your debts, even those that you want to continue paying on and keep. You will need to reaffirm those debts with the creditor and sign paperwork indicating that you don't want to discharge them in your case. However, you cannot simply keep them out of the case altogether.
Not completing the credit counseling courses.
When going through a bankruptcy proceeding, you have to complete two credit counseling courses. One course is taken before you go in for your 341 hearing. The other is taken before your case is discharged. If you don't end up completing one of these courses, it could prolong your discharge or get your case dismissed. That could make you start the whole process all over again. Your attorney will let you know when to take the course and where to go to complete it. Since you can complete the counseling online or over the phone, there is no reason why you can't fit it in your schedule at some point in time or another.
Lying about your income.
One of the main things that determines if you are eligible to file for bankruptcy or not is your income. Lying about your income to get out of paying your debts will end up getting you in trouble. Bankruptcy fraud is a serious matter and shouldn't be taken lightly. Make sure you are completely honest about the amount of money you receive every month. This will allow your attorney to work the numbers to best accommodate your case.
By not making one of the mistakes above, you can make sure your case goes through as planned and there are no hiccups along the way. Contact a business, such as David Reynolds & Associates Debt Counselling, for more information.