Mistakes to Avoid when Filing Chapter 11 Bankruptcy

When you are filing a chapter 11 bankruptcy there are some mistakes that you should avoid in order to ensure that your bankruptcy goes smooth. Here are a few mistakes that you should avoid at all costs if at all possible.

Failure to include all of your debts on your bankruptcy

If you forget to do this, it could prove detrimental to your case. The law requires you to include every debt that you have ever incurred on your bankruptcy petition. This includes debt items that you intend on keeping such as your house or car. In order to keep your car and house you will need to sign a reaffirmation agreement with the bankruptcy court in order to keep those items.

Not telling your bankruptcy attorney everything

If you withhold information from your bankruptcy attorney it makes their job that much harder to do. Sometimes bankruptcy attorneys may not find out all of the information from their client until the mandatory 341 hearing where their clients must meet with the judge and creditors. This can prove problematic to the attorney client relationship. It is important to be honest and up front with your attorney at all times.

Not retaining a bankruptcy attorney

This is probably the biggest mistake of all especially if you are filing a chapter 11 bankruptcy. There are so many complexities and nuances with bankruptcies that an experienced professional is definitely necessary. Additionally, if you have never filed bankruptcy before you will need an attorney to ensure that you do not make any mistakes.

Waiting until is too late to file

The longer you wait when you are in a bad financial situation, the more apt the situation is to get worse. If your creditors are calling you non-stop and threatening to garnish your wages then you should probably consider filing bankruptcy so that a stay can be put in place by the judge which prohibits creditors from contacting you. Additionally, the sooner you get to a bankruptcy attorney, the better you will be. Once you file bankruptcy, you will be well on your way to getting a fresh start with your credit.

Getting Help

If you are in dire straits financially and you are considering filing a chapter 11 bankruptcy, then you should consider avoiding the aforementioned mistakes at all costs. Additionally, you should consult with a bankruptcy attorney who can help you through the process of filing bankruptcy and who can make sure that everything goes through smoothly.

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