Issues That Can Impact Your Bankruptcy Case
The protections of bankruptcy can be a welcome source of relief for anyone who is facing insurmountable debts. Between the possibility of debts being eliminated or restructured and the automatic stay that goes into effect and prohibits creditors from going forward with certain actions against debtors, the perks of bankruptcy are numerous. But unfortunately, the bankruptcy process doesn’t always go quite as planned. There are multiple issues that can affect a bankruptcy petition and even cause it to be denied. The good news is that the right bankruptcy attorney can help you avoid making a mistake and improve the odds that your bankruptcy is a success. Let’s discuss three sets of issues that should be avoided when it comes to bankruptcy.
Filing at the Wrong Time
Timing is everything when it comes to bankruptcy and it is essential to understand that your income at the moment you file affects other aspects of your claim. More specifically, the amount of money that you have at your disposal can affect everything from how your bankruptcy can be handled to whether you qualify for Chapter 7 or Chapter 13. For example, getting a new job or a promotion at work that comes with a significant pay raise is great for your pockets but not necessarily great for your bankruptcy.
Even what you know to be a temporary spike in your recent earnings can inadvertently affect the court’s determination of your ability to repay outstanding debts. An increase in income or some other change in your financial situation does not necessarily mean that your bankruptcy plans will have to be put completely on hold, but it does mean that you should consult with a bankruptcy attorney before continuing to proceed.
Actions That Could be Viewed Questionably
In addition, you should remain mindful of how your actions could be interpreted. You should strive to be as up front as possible when filling out the paperwork to initiate a bankruptcy petition. No matter how pure your intentions may be, you should never exaggerate any aspect of your financial situation and should try to remain as truthful as you can. You also want to avoid doing anything that could be interpreted as an attempt to hide your assets by transferring those assets to someone else before or during the bankruptcy proceeding.
Attempting to Go Through the Bankruptcy Process Without the Right Legal Help
Bankruptcy may provide the opportunity to grow from a clean slate, but it should be undertaken with the help of a seasoned attorney who has significant experience helping borrowers escape mounting debt. As the Plantation bankruptcy attorneys at Nowack & Olson, PLLC, we understand the obstacles that can lead to issues in a bankruptcy case and, more importantly, how to guide those borrowers who turn to us for assistance around them. When you entrust us with your bankruptcy petition, you will gain the help of someone on your side who can fight for your best interests while guiding you through a process that can be extremely confusing and complicated. Contact us today to begin with a free consultation.