Deciding you need to file for bankruptcy can be a challenging yet necessary step toward a fresh start. However, you should avoid committing mistakes that may prevent you from moving forward with your case. While hiring a competent attorney well-versed in bankruptcy law will help you make informed decisions, you should do your part and learn about the following do’s and don’ts when filing for bankruptcy.

Do:

Provide complete information about your assets, expenses, and income.

The court uses these details to determine your eligibility when filing for bankruptcy. If you’re not entirely truthful, the court might dismiss your case, and you could lose your discharge. Also, the FBI looks into bankruptcy crimes, so you can face jail time and hefty fines for being dishonest.

File your taxes.

Not updating your tax records before filing for bankruptcy may also be grounds for dismissal of your case. Bankruptcy law requires you to file all your tax returns for the last four years for Chapter 13 bankruptcy. If you are choosing Chapter 7 bankruptcy, the court will need only your latest tax filings.

Continue with your car or house payment.

Filing for bankruptcy doesn’t mean you can stop making payments on your car or house. In Chapter 7 bankruptcy, the court can allow repossession of your car or foreclosure on your home if you stop making monthly payments. If you missed payments before filing for Chapter 13 bankruptcy, the amount you have to settle would increase while your bankruptcy case is ongoing.

Don’t:

Wait before speaking to a bankruptcy attorney.

A significant portion of the work is done before filing for bankruptcy. An experienced attorney will know the ins and outs of bankruptcy law, and they’ll be able to give you essential advice to keep you from making critical mistakes. Retaining a lawyer will also relieve you of the burden of speaking to collection agencies.

Transfer assets.

You might be tempted to transfer or hide your assets before you file for bankruptcy, but know that this isn’t allowed. It will put your discharge at risk, and you may even end up with criminal charges. Talk to your attorney on how to transfer or sell property.

Continue to use credit cards.

Doing so will be construed as circumstantial evidence if you’re charged with fraud since it begs the question of how you will be able to pay your credit card bill when you can’t even pay your debts. Most likely, you already have missed credit card payments. Incurring more debt before you file for bankruptcy will just complicate your case.

Bankruptcy law can be confusing and complicated. Turn to Donna C. Crooks Attorney At Law if you need expert legal assistance when filing in Enterprise or Dothan, AL. This attorney has more than 20 years of experience helping people when it comes to cases involving military divorces, child custody, personal injury, and bankruptcy. Call (334) 598-9534 today for a phone consultation or visit the website to learn more about the team.