When you are filing for bankruptcy, you are entering new territory and may not know exactly what to do. While you should hire a bankruptcy attorney top help you, here are a few helpful tips on what you should not do when you are filing for bankruptcy. Remember that honesty is the best policy, especially when it comes to a legal dealing like a bankruptcy. A reliable bankruptcy attorney would agree with these "don'ts." When looking for a dependable person to represent you for your bankruptcy, make sure to choose someone who will agree with these helpful hints.
First of all, don't lie. While it may seem like an obvious statement, there are times when people decide to fudge facts, hoping that it will be a benefit to them. It is never a good idea. Some people will apply for a bankruptcy and find that they don't qualify. If you were not approved for a bankruptcy and filed anyway, you just made a grave mistake. Often if you weren't given permission to file for bankruptcy, it's because there are better options available for you. A financial advisor or bankruptcy attorney may be able to help you find out what those other options are.
As well, don't leave out income. People may think that a second, part-time job doesn't count as actual income. Well, it does. As well, if you have children who have part-time jobs while they are at school, and are still considered your dependent, you will need to list their income in your bankruptcy filing as well, It is very important that you adhere to this rule. If you don't, your bankruptcy may be dismissed from court, and you may be banned from ever filing for that type of debt again.
In addition, don't leave out cars on your bankruptcy paperwork. People often think that if they don't include their car, they will be able to keep it. The car is an asset, so it must be listed. This includes your car, your spouse's car, and your children's cars. Even if the cars are not in your name, then you still need to list them on the documents. The court may then decide whether or not they will need to sell your cars to satisfy all of your debts. If you have cars that have other people's names on the titles, even though they are owned by you or your children, then you should keep the car in the other person's name for the time being. Transferring a car into your name right before a bankruptcy almost guarantees that you will lose it.
Fourth, don't leave out car loans. You may be able to keep the vehicle, but you will still need to let the car lender know. As well, the lender may make a certain list of rules or guidelines to follow regarding the vehicle during this time. If you don't notify your lender, chances are that you will lose the car. In addition to car lenders, you need to let every creditor you are dealing with know about your bankruptcy.
Some people may try and leave one credit card company out of the loop concerning the bankruptcy, so that they still have a working credit card they can use. This isn't a good idea. Credit card companies are normally centralized, so chances are that the company will know about your bankruptcy even if you try to keep it a secret. This may get you into trouble, so it's best to steer clear. When you are filing for bankruptcy, follow all the rules and respect the counsel of your attorney and financial advisor. This way, you will get the best possible experience out of your bankruptcy and you won't run into dangerous water because of dishonesty.