In many cases, filing for bankruptcy can be the only means of digging yourself out of debt, but the process can be extremely complex. Even minor mistakes or oversights can leave you responsible for debts you could have discharged, or give the court cause to toss your case out altogether. The complexity of bankruptcy law makes it easy to commit serious errors that could have significant long-term consequences, so it’s always best to consult an experienced professional before filing.

3 Common Bankruptcy Mistakes to Avoid

1. Filing the Wrong Chapter

Bankruptcy law gives private debtors two options for dealing with debts, and choosing the wrong program can dramatically impact your finances. For instance, someone with significant assets filing for Chapter 7 could lose valuable property they could have kept in a Chapter 13 filing. By the same token, borrowers with insufficient income who file for a Chapter 13 might have their petition dismissed, and will have to start the process over.

2. Not Including All of Your Debts

Both Chapter 7 and Chapter 13 bankruptcy will discharge most unsecured debt, but only if you listed it in your original petition. Borrowers who forget to include eligible debts are often surprised to find that they’re still financially responsible for paying them back after the conclusion of their bankruptcy.

3. Filing Without an Attorney

Although you have a legal right to represent yourself in any legal proceedings, having an attorney guide you through the process is crucial for achieving the best possible outcome. With their understanding of bankruptcy law, your attorney will prepare your paperwork, advise you on the best time to file, and even represent you at any required hearings.

Since 1982, struggling borrowers throughout Ozark and Enterprise, AL, have relied on Ray T. Kennington, Attorney At Law to help them get a second chance at life. With his experience and in-depth understanding of the process, he helps clients in almost any situation find relief from overwhelming debts. Visit him online for more on his bankruptcy law services, get more tips on Facebook, or call (334) 445-1200 to arrange your free consultation today.