An individual needs to thoroughly assess his/her assets and debts before filing for bankruptcy. This process is known as pre-bankruptcy planning. In this stage, one needs to ensure that they avoid the common mistakes made in a bankruptcy proceeding and come out of the bankruptcy proceedings triumphant.
Consult a Legal Expert
Individuals filing for bankruptcy generally lack the legal awareness needed to make it out of a bankruptcy proceeding with success. The bankruptcy proceedings are filled with various complexities, which are very difficult for a non-specialist to understand. Without an attorney, a person who has filed for bankruptcy might not get the best out of those proceedings.
Even bankruptcy courts suggest petitioners hire qualified attorneys to handle their matters. It’s usually the best choice to hire an attorney and discuss your situation to get the best out of the subsequent proceedings.
Avoiding Property Transfer
Before filing for bankruptcy, you must ensure that you have all your property under your ownership. Sometimes individuals tend to give away some of their property to friends or family members to keep it out of the bankruptcy estate. But this is a fraudulent practice, and you should avoid it before going for bankruptcy.
Not Listing All Creditors
Before going for bankruptcy, you must make sure that you have listed all the creditors that you owe any debt. If you fail to name a creditor, then the debt owed to that creditor may not be discharged in the bankruptcy proceedings, and you will be responsible for paying that debt.
Avoid Prior Purchases or Payments
If you have made any credit card purchases or repayment to particular creditors immediately before filing for the bankruptcy, those actions could be thoroughly scrutinized by the bankruptcy court and could lead to problems. Thus, these kinds of transactions should be avoided.
There are several other complexities involved in a bankruptcy proceeding, so hiring a Dallas bankruptcy attorney to ensure you come out of the proceedings with most of your debt discharged.