When it comes to filing for bankruptcy, many people assume they have little to do in the process. Actually, it is the opposite and the debtor is required to complete many actions. Knowing what to expect ahead of time can minimize mistakes and make the Dallas bankruptcy process a smooth one.
One of the most important aspects of the bankruptcy process is full disclosure. While you may think this is silly, there are many instances in which people provide inaccurate information to the court in their petition. Although this isn’t always intentional, leaving out information, hiding assets or failing to provide details about your financial history can be extremely problematic for a successful debt discharge. Always be open and honest about your income, assets, debts and financial records in bankruptcy.
Your earning and spending habits are also important prior to filing and while your case is active. In other words, changes to your income or debts can influence the outcome of your case. An increase in your income or large payments towards your debts could influence your eligibility for Chapter 7 or require you to pay more in Chapter 13. While you may think that a sudden decrease in your income or increase in your debts would make you more eligible for bankruptcy, it could be viewed as suspicious by the court. Therefore, it is best to maintain the same level of income and debt payments within the months leading up to and during your bankruptcy case.