Five Common Mistakes You Can Make When Filing for Bankruptcy

Posted on November 25, 2019 at 1:07pm by
Kansas City Bankruptcy Attorney

Filing for bankruptcy can be scary for many people. It requires a tremendous amount of detail and extensive knowledge of bankruptcy laws. These complexities can sometimes make it easy for individuals to make mistakes. Unfortunately, mistakes can have disastrous consequences. Bankruptcy is much less scary if you have an experienced bankruptcy attorney handling your case.

An attorney can help you avoid the following bankruptcy mistakes.

#1 Failing to Provide Documentation

When you go through bankruptcy, a trustee is assigned to your case. This trustee will review the petition for bankruptcy and the documentation you provide. Trustees often ask to review important documents from the last six months. If you forget important financial documents, then you may find your bankruptcy case dismissed. Even if your case is not dismissed, you may need to attend extra hearings.

#2 Failing to Take Credit Counseling Courses

The law requires you to take credit counseling education courses when filing for bankruptcy. These are also called financial management classes. Under the law, you only have a limited time to take these classes. Failing to take these classes could result in the closure of your case. You can find a list of approved credit counseling providers online. You can also visit the bankruptcy clerk’s office for the district where you file bankruptcy.

#3 Filing Under the Wrong Bankruptcy Chapter

Without an experienced bankruptcy attorney on your side, you could file for the wrong type of bankruptcy. The benefits of Chapter 7, 11, and 13 bankruptcy can vary depending on your unique circumstances. Choosing the best option will save you time and money.

#4 Failing to Understand Exemptions

It is important to understand how exemptions work during bankruptcy. Without adequate knowledge of exemptions, you may not be able to protect some of your most important assets. In many cases, exemptions can safeguard your property and assets while going through bankruptcy. An experienced bankruptcy attorney can determine which exemptions you can use for your case.

#5 Failing to List All Creditors

Going through the bankruptcy process can be chaotic and overwhelming without experienced legal assistance. For instance, you may fail to list all of your creditors. The law requires you to include all creditors when filing for bankruptcy. Even if you intend to repay these creditors later, you must list them. If you omit a creditor, then you may have to repay that debt even after the bankruptcy is complete. This can cost you money and complicate your financial future.

A Kansas City Bankruptcy Attorney Can Help

One of the easiest ways to avoid making mistakes when filing for bankruptcy is to contact an experienced bankruptcy attorney. Mistakes can break cases, and filing for bankruptcy without an attorney is risky at best. Even worse, it could cost you significantly.

When considering bankruptcy, it is important to understand the process. That is why it is important to speak to an experienced and skilled Kansas City bankruptcy attorney at The Sader Law Firm. To learn more about your bankruptcy options, we encourage you to contact us. Call us at (816) 281-6349 or fill out our confidential contact form to schedule a consultation.