If you consider all the debt relief options available, you might end up choosing bankruptcy. Bankruptcy offers a lot of relief for many situations, yet it has long-lasting consequences. It provides a great way to restructure or eliminate your debts, though. If you decide to use bankruptcy, you will need to avoid certain things before filing. Here are some of the top things you should not do before declaring bankruptcy.
Choosing to File Without a Lawyer
Some people try to save money on their bankruptcy cases by filing themselves. While you have the legal right to file your own case, filing without an attorney is rarely a good idea. An attorney can assist you with your case and ensure that you complete it properly. Attorneys charge fees for their services, but the fees are worthwhile.
Hiding or Lying About Things You Own
The second thing you should not do is to hide or lie about the things you own. When you file for bankruptcy, you are legally required to list every asset you have. If you try to hide assets, the court might find out you are hiding them. If you lie about them, they will likely learn about these items. You also cannot give them away or sell them quickly before filing your case. Doing these things can result in the court dismissing your case.
Racking Up New Debts
You also should not rack up new debts before filing. People will sometimes charge a lot on their credit cards before filing with the intention of having the court forgive the debts. The court considers this fraud, so you should avoid it.
Trying to Hide Some of Your Income
The next thing to avoid doing is to try to hide some of your income. You must disclose all of the money you earned in the last six months, and you cannot lie about it.
Lying on the Bankruptcy Documents
The final thing to avoid is lying on your bankruptcy documents. You might be tempted to lie about something when completing your paperwork, but this is not a smart idea. If the court finds out, they will instantly dismiss your entire bankruptcy case.
Timing your bankruptcy case is also vital, and you can learn more about these things by meeting with a bankruptcy attorney. An attorney can help you prepare for your case and assist with filing your bankruptcy documents when you are ready.
