Deciding to file for bankruptcy is a tough one, but in most situations, there are simply no other options. There is often a period between when people decide to file for bankruptcy and when they actually do it. During that time, people are usually getting all of the necessary documents in order and beginning to list all of their assets. This little gap between decision and action can either be used to the benefit of your bankruptcy or be its detriment. Best position yourself for a successful process by avoiding these five things before filing for bankruptcy.
Not Filing Tax Returns
Not filing your tax returns is an unfavorable decision in any instance, but it is most damaging when you plan on filing for bankruptcy in the near future. Your recent tax returns are a part of the documents necessary to file bankruptcy paperwork. Their role is to dismiss any claims of owed back taxes. Not having up to date tax returns can impede the filing process and cause your case to come to a halt.
Supplying Inaccurate Information
One of the first things that will happen when you choose to file for bankruptcy is that you’ll receive a court-appointed trustee. Part of his duties is to collect your financial data and review it for accuracy. Should his findings show that you were dishonest with the supplied information, you may face criminal prosecution, case dismissal, or denial of debt discharge which renders you responsible for paying back debts.
Acquiring New Debt
Many people believe it’s a good idea to run up their credit and take out egregious loans in the months leading up to filing for bankruptcy. They do so with the idea that they’ll be able to discharge it all through Chapter 7 bankruptcy. As enticing as this may be, you are setting yourself up for disaster by doing so. The debt you rack up in the 90 days before filing may not be discharged if the creditors can prove fraud (that you incurred it intentionally).
The last thing you want to do before filing for bankruptcy is start moving your assets around. While some people do this under the pretense that specific assets are exempt from bankruptcy, it is perceived as if you’re attempting to hide your assets from the court-appointed trustee. If you plan on moving assets or switching titles, hold off on filing for bankruptcy so that your actions aren’t seen as intentional.
Not Speaking With an Attorney
Louisiana bankruptcy attorneys are here to help you through the process. They can make you aware of what to do and what not to do in the months leading up to filing. They can also ensure that when you do file, you do so efficiently and in a manner that won’t disrupt the process. Those who believe they can get through bankruptcy without legal help, are likely to face a lengthy and grueling task.
Avoid the stresses of filing for bankruptcy independently by acquiring the legal services of a Louisiana bankruptcy attorney at E. Orum Young Law Offices. We can help you choose the most appropriate route for your specific case and guide you through the entire process. We have filed the most bankruptcies in Northeast Louisiana and are ready for you to be the next to benefit from our services. Contact us today for a free case evaluation. Our Trail Guarantee ensures that we will take your case to trial per your request.