Common Bankruptcy Mistakes That Cost You

: Reese Baker & Associates

  Filed under: bankruptcy

Common Bankruptcy Mistakes That Cost YouPeople drowning in debt are often plagued by a feeling of desperation. Desperate to avoid calls from credit collectors. Desperate to avoid the pitfalls of missed payments. Desperate to get out of debt. And desperate to stop feeling guilty. The bankruptcy process is complicated, which is why working with a Houston bankruptcy lawyer is crucial to your success. All too often people are unaware that there are common bankruptcy mistakes that cost you the outcome of your case. Be aware of these common mistakes that could cost you, not only the outcome of your case, but even fines and the risk of jail time.

Common Bankruptcy Mistakes That Cost You

Selling assets

It can be tempting to sell some of your belongings or property to obtain income to make payments or simply stay afloat from month to month. While this doesn’t seem like a bad thing, it is very harmful if you do this before filing for bankruptcy. The court may look at this as your attempt to avoid having any nonexempt property liquidated and could be viewed as fraudulent. If you have sold any assets in the months leading up to your filing you must tell your Houston bankruptcy lawyer and list the amount of money received on your filing petition.

Making an inside transfer

Similar to selling assets, it is not acceptable to allow anyone to  hold on to property for you or for you to “give” them the item prior to a bankruptcy filing. This is also viewed as your attempt to hide valuable property to avoid the risk of liquidation. Again, if you have done this you must tell your Houston bankruptcy lawyer and list the amount of value of the item on your filing petition.

Hiding information

Your bankruptcy filing petition is extremely detailed and lengthy for a reason, the court needs to have a thorough picture of your financial situation and property details. Leaving out information related to debts, income, property or funds can leave you without a debt discharge and even under suspicion of fraud. Even if you don’t think the information is important you must list anything and everything.