It’s never easy deciding to file for bankruptcy. However, once you’ve made the decision, it shouldn’t be too hard to get through the process and, of course, soon you’ll be enjoying a new beginning and the relief that comes with it. That being said, you need to be careful about what you do prior to filing a bankruptcy. Some decisions can actually ensure that your experience is far worse than anything you experienced leading up to it.
For example, you may feel tempted to lie on your paperwork. The same can be said for when you meet with creditors. If you don’t, you’ve committed perjury and the target of criminal prosecution. Understand, too, that creditors really want their money, so it’s not like sneaking a white lie past them is really a risk even worth taking.
Also know that, while bankruptcy is a form of debt forgiveness, that doesn’t mean not paying your taxes is now an option. Some people let them coast, even for a number of years, if they plan on filing bankruptcy I the future. This is never a good idea, but when you’re hoping to receive the benefits of bankruptcy, it’s an especially bad one. First of all, there may be tax claims that take priority in your case. Secondly, though, your last two years of tax filings are necessary for the courts to establish your past and current earnings, as well as any assets you may own.
Lastly, now is not the time to rack up new debt because you think you’ll soon be free of it. A creditor will have a very good case for objecting to your bankruptcy if they can prove you were putting more purchases to credit within the past 70 to 90 days.
If you’re considering bankruptcy, speak to a lawyer who has experience helping others in your scenario. They’ll be able to walk you through the process and ensure you don’t make mistakes like the above or any others.
