Bankruptcy might have become your worst nightmare as it stresses you out and makes your situation much more real. Even when bankruptcy becomes one of the most difficult things that you ever endure in life, there are some things that could make the situation worse even when it doesn’t have to be that way. Bankruptcy is one of the most viable routes that you can take for your business when you feel that your financial situation is at its worst. Today we want to help you avoid certain mistakes when it comes to filing for bankruptcy such as waiting too long to file and errors in filing your bankruptcy paperwork.
Common Mistakes Many Make in Bankruptcy
Waiting Too Long: Waiting to file for bankruptcy does not help your situation, especially when you are already falling behind when it comes to the creditors and debts you still owe. Many people will try to revisit their situation again and again, believing that they can put off filing and find another way around bankruptcy. However, continuously putting off filing might not work in your best interest. You might find that the interest continues to pile up against you and your financial woes are only worsening, which is why it is a good idea to act as soon as possible.
Paperwork Errors: There is typically a lot of paperwork when it comes to bankruptcy and, whether you have an attorney or you are handling most of the mess yourself, many mistakes can occur. Common paperwork includes declaring your debts and assets, and any misinformation could cost you. When you are filing for bankruptcy, you are submitting your documents under perjury. You want to ensure that all of your paperwork is accurate so that you don’t have to file an amendment or go through any other lengthy process.
Outright Lying: When you intentionally lie about your assets, know that the truth will be discovered and it could lead to trouble. The bottom line is to always tell the truth when it comes to disclosing all of your assets because, if you lie, you could be banned from filing your debts in the future. Don’t hide from anything.
Failure to Disclose: Your debts might not be discharged if you accidentally make the mistake of not disclosing all of them. You might end up having to file an amendment or go another route after you discover these mistakes, which is why you should speak with an attorney immediately if you catch something after filing has taken place.
Not Consulting an Attorney: You will probably find that bankruptcy is too complicated to handle on your own without the help of an attorney who has practice in these types of cases. Attorneys know the legalities involved in these cases and can inform you of the many laws that apply to your case or the assets that could be at risk. It is imperative that you speak with an attorney immediately.
Filing for bankruptcy can be an intimidating endeavor, but it doesn’t have to be if you have a knowledgeable attorney on your side who is well-versed in these cases and willing to help you through every step of the process. At MJ Watson & Associates, our experienced bankruptcy attorneys in Texas are here to help you through a process that you might deem a “nightmare.” Initially, filing for Chapter 7 or Chapter 11 bankruptcy can be complex, but we will lessen the stress you feel throughout. Contact us to find out what we can do for you at 214-965-8240.