If you have decided to file chapter 7 bankruptcy, this is likely a wrenching decision for you and anyone in your family. You will need to make sure that you get through the difficult process as quickly as possible. Here are some common pitfalls that you might run into that could delay your chapter 7 bankruptcy process and make it more painful than strictly necessary.
1. You Forget to Include Creditors and Your Debt With Them is Therefore Not Discharged
The paperwork for filing for bankruptcy can be miserable. It requires a huge level of detail, as well as for you to track down information about individual creditors and specific debts. The problem is that if you should accidentally forget a creditor on your bankruptcy paperwork, the debt that you have with that creditor might not be entirely discharged. Before you decide to file for bankruptcy, keep a full month's worth of bills and comb through your inbox to make sure that you have not forgotten a single bill. A full, comprehensive credit report will also help you out with regards to make sure that you have found all of your creditors.
2. You Are Being Called Out By a Lender for Fraud
Try to avoid taking out any new debt with any lenders for a few months before you actually file for bankruptcy. The reason for this is that, if you take on a new debt and then immediately file for bankruptcy right after you do so, you will appear, to the lender, like you never actually planned on paying back the loan. This is tremendously problematic and can lead to the lender objecting to your claim of bankruptcy. This could lead to the lender's debt not being dropped from your account and increase the chances that you will suffer financial hardship.
3. You Are Being Accused of Moving Assets
Finally, if you move assets around so that they are not taken in an attempt to pay off your debtors, such as giving your car to your sister for one dollar, then you will look as though you are trying to hide assets from the government and from your creditors. This is illegal. Therefore, if you decide to try to sell off your assets on your own to try to pay off the debts, such as selling your car to your sister for less than it's worth in order to pay off a loan quickly, make sure that you have proof of that.
For more information, talk to a company that specializes in chapter 7 bankruptcy. They will be able to help greatly simplify the process. Contact a firm like Shoemaker & Dart P.S. Inc to get started.