Filing for insolvency may be a difficult but necessary process for many people. While it may appear straightforward, several things could go wrong if you handle the process alone. If you want to avoid making any mistakes, seek counsel from a bankruptcy attorney. These lawyers handle bankruptcy cases daily and can protect your interests. Here are four mistakes you'll easily avoid when you hire them:
Not Providing All the Required Documentation
When you file for insolvency, you'll be required to provide a lot of documentation. This includes your tax returns, pay stubs, bank statements, and asset list. If you don't provide all the required documents, your case could be delayed or even dismissed. A bankruptcy attorney will tell you the documents you need to provide and ensure that you have everything in order before you file.
Failing to Disclose All Assets
When going through the insolvency process, it's important to disclose all of your assets. This includes anything of value that you own, such as property, vehicles, jewelry, and art. It may be tempting to keep some of your assets a secret to protect them. However, this could lead to serious consequences. If the court finds that you've intentionally hidden assets, they may charge you with bankruptcy fraud, which is a federal crime. A bankruptcy attorney will work with you and ensure that you properly disclose all your assets. They'll also tell you the assets you can keep and the ones you'll have to give up.
Not Reviewing Your Options
There are several bankruptcy options available to debtors. Before selecting the most appropriate option for your particular situation, you should consider several factors. These include your debts, your income and assets, and your long-term financial goals. If you're not sure which bankruptcy option is the best, contact a bankruptcy attorney. They'll examine your financial situation and help you choose the option that will allow you to get a fresh start.
Incurring More Debt Before Filing
One mistake people often make is incurring more debt before they file for insolvency. This can be a problem because any new debt you incur after filing may not be discharged. So, if you're considering filing for insolvency, you should stop using your credit cards and other lines of credit. Otherwise, you will end up paying off that debt even after your bankruptcy case is finished. A bankruptcy attorney will tell you which debts are dischargeable and which ones aren't. This will help you make the best decision for your financial future.
Filing for insolvency is a serious decision that comes with many consequences. If you want to avoid making any mistakes during the process, consult with a bankruptcy attorney beforehand. They'll guide you through the filing process and help you avoid any potential pitfalls.
Contact a law firm like McManus & Associates to learn more.