Discharging debt by declaring bankruptcy can improve your life for the better—as long as you avoid making critical mistakes along the way. Although many debtors try to save money by representing themselves during the proceedings, doing so can lead to costly errors that put them in an even worse financial position. Here are just a few of the most common mistakes an attorney will help you avoid. 

3 Common Bankruptcy Mistakes

1. Filing for the Wrong Chapter 

Those who are unfamiliar with bankruptcy law may find it challenging to decide if Chapter 7 or Chapter 13 is best for their situation. If you meet the qualification requirements for both, a lawyer will explain the pros and cons of each so you can determine which approach is ideal. Otherwise, you could end up losing property you wanted to keep or facing a lengthy repayment plan when you simply wanted to discharge debt immediately. 

2. Gifting Assets to Loved Ones 

Giving property to family members may seem perfectly innocuous, but doing so shortly before filing could be interpreted as fraud. Regardless of your intentions, the court might assume you only distributed the assets to shelter them from creditors until the proceedings were over. 

3. Increasing Your Consumer Debt

As soon as you make the decision to declare bankruptcy, stop using your credit cards. Typically, any debt that you incur within 90 days of filing will not be discharged during the proceedings. Attempting to include such debt in the proceedings will be considered fraud, which can result in serious consequences. 

If you’re in over your head financially, the legal team at Bueker Law Firm in Stuttgart, AR, can help you decide if declaring bankruptcy is the answer. Led by Jeremy Bueker, an attorney at law with more than 16 years of experience, this firm focuses on discharging debt. They also assist clients with foreclosure and repossession. To discuss your financial situation with a seasoned bankruptcy lawyer, reach out on their website or call (870) 673-1313.