Chapter 7 bankruptcy relief can provide you with the opportunity to wipe out a large amount of debt and start over with a virtually clean financial slate. Unfortunately, if you make any mistakes when filing for bankruptcy relief, you could find the court dismissing your case before you are able to get the debt relief you require. To make matters worse, the court could prevent you from seeking bankruptcy relief for the same debts in the future or even file criminal charges against you depending upon the circumstances in your particular case. Taking the time to review the information below can help you avoid making the common mistakes that many people make when filing for Chapter 7 bankruptcy.
Choosing Not To Hire A Bankruptcy Attorney
While it is easy to understand why individuals who are seeking bankruptcy relief as a result of overwhelming debt would want to avoid the legal costs associated with hiring a bankruptcy attorney, attempting to complete a Chapter 7 bankruptcy on your own can be a very costly mistake. This is because the law regarding this type of debt relief is very complex and truly does require a level of expertise that the average person simply does not possess. That is why it is so important to always hire a bankruptcy attorney when pursuing bankruptcy.
Transferring, Selling, or Hiding Assets
Chapter 7 bankruptcy relief is not made available to everyone. Only individuals who have a limited income and limited assets will be eligible for this type of bankruptcy relief. Consequently, far too many people attempt to transfer, sell, or hide assets in order to qualify for the bankruptcy relief that they are seeking. Other individuals may choose to take these actions in an attempt to protect more expensive assets from being seized in order to pay off their creditors. These actions are illegal and can result in fraud charges being brought against you. Furthermore, thanks to the expertise of the trustees that are assigned to review financial records in these cases, it is highly unlikely that your deception will go unnoticed. For this reason alone, it is vital that you are always honest when it comes to disclosing your assets during a Chapter 7 bankruptcy.
If you are concerned with losing your assets as part of your bankruptcy claim, share this concern with your attorney. There are many legal steps that can be taken to help protect certain assets. Taking this route can help to save your assets without landing you in hot water in the process.
Purposely Accumulating Debt Prior To Filing
A lot of people make the mistake of choosing to accumulate debt directly before filing for bankruptcy. In most cases, the thought process is really quite simple. Individuals simply decide that they may as well use up any credit they have available since the debt is going to be forgiven anyway. However, using credit when you know you intend to file for bankruptcy is actually a crime and can leave you facing some rather hefty fines or even jail time. That is why you should suspend all nonessential spending once you decide to file for Chapter 7 bankruptcy relief.
For more information, contact a bankruptcy law firm such as Martinez Law Firm.