The bankruptcy process is not intended to be difficult, but due to the financial nature of the process it is not always the easiest process to navigate. There are several steps that are crucial for the success of a case. If any one of the steps is missed or inaccurate, the case may end up being dismissed. To maximize your chances of obtaining a debt discharge, avoid these top five bankruptcy mistakes.
1. Failing To List Assets — the bankruptcy petition is one of the most important pieces of information and requires you to list all of your assets when filing your case. Failing to list any of your assets can be viewed as a fraudulent action, leading to an immediate dismissal of your case. Further, if the court feels you intentionally withheld this information you could face serious consequences.
2. Failing To List Creditors — you are also required to list all of your creditors on your bankruptcy petition, even if you are not requesting a discharge of your particular debt. Failing to list all of your creditors to which you owe money can complicate the bankruptcy process. If you do not list all of your creditor information your case could be delayed until the court receives this information or dismissed.
3. Failing To Restrict Spending or Asset Transfers – many people end up with a case dismissal or facing bankruptcy fraud because they failed to follow certain rules of filing for bankruptcy. You must not accumulate any new debt within 90 days of filing for bankruptcy, doing so may result in the court rejecting these debts from your discharge. You must not transfer any assets to friends or family before filing for bankruptcy, or these actions could be viewed as fraudulent.
4. Failing To Appear At Your 341 Meeting Of Creditors — this meeting is a required step of the process in which you will meet with creditors and be subject to questioning. Whether you fail to show up on purpose, or simply because you forgot the date and time of your meeting, your case will likely be dismissed.
5. Failing To Complete The Credit Counseling Course — the court requires anyone filing for bankruptcy to complete a debtor education course before their debts can be discharged. The course is extremely important in processing your case and must be completed within six months of filing your case. Failing to complete the course or providing the certificate of completion can delay your case or result in dismissal.