5 Things To Consider During A Bankruptcy

Filing for bankruptcy can be one of the best ways to gain control over your financial situation. However, there are some things to take into consideration during the process to ensure that everything goes as smoothly as possible.

• Do Not Take Paperwork Casually.

  Most people are aware that providing dishonest information could subject them to criminal prosecution. This is why it’s essential to avoid being casual toward paperwork. Any incomplete or accurate information could cause a lot of problems in the future. For example, you might have to file even more paperwork and pay more fees as the simple result of leaving out details.

  More seriously, if you have an asset and forget to file it, that property could be taken from you. Even worse, your bankruptcy case could even be entirely dismissed.

• Failure to File Income Tax Returns Could Result in Dismissal of Bankruptcy.

  Since your tax returns are necessary to determining your earnings and assets, proper assessments cannot be made without them. If you have not filed income tax returns prior to filing for bankruptcy, it will likely result in the dismissal of your case.

• Do Not Avoid Collection Actions.

  Creditors are most likely not aware that you are filing for bankruptcy. It is extremely important to not avoid their attempts to contact you. As soon as possible, inform them that you are in the process of filing for bankruptcy so they do not seize property or take action to garnishee wages. This could ultimately result in costly legal proceedings in order to have the property returned, which is not ideal.

• Do Not Selectively Repay Loans (Especially to Family).

  If you have repaid a loan to a family member and even other creditors, this may be considered a “preferential transfer.” Preferential transfers can be reversed and the bankruptcy trustee may file to have the money returned. This can be especially troublesome if you decide to pay back your family, only to find that they will have to return the money.

If you are considering filing for bankruptcy, contact our team at Kevin Thatcher and Associates is today. We’ll help you successfully navigate bankruptcy so you can move forward free from debt.