Mistakes to Avoid in Your Consumer Bankruptcy Case
When you are planning to file for consumer bankruptcy in Illinois, it is equally important to understand the steps that you should and should not take. There are many things you can do in advance of your bankruptcy case and during the proceeding that ultimately can harm your case, and it is important to know what you should avoid. Our experienced Oak Park consumer bankruptcy attorneys have information for you about some of the common mistakes that are made in consumer bankruptcy cases that you should avoid.
Mistake #1: Providing Inaccurate Information About Your Assets
You must disclose all assets when you file for consumer bankruptcy, even assets that you believe will be exempt under the Illinois bankruptcy exemptions. If you intentionally fail to provide the bankruptcy court with full and accurate information about your assets, including accurate information about their value, you could be putting your bankruptcy discharge at risk and could ultimately face allegations of bankruptcy fraud.
Mistake #2: Transferring Assets to a Family Member or Friend Before Your Bankruptcy Case
When you file for consumer bankruptcy, whether you are filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy, you cannot transfer assets to friends or family members before submitting your bankruptcy petition and required schedules in order to avoid having those assets counted as part of the bankruptcy estate or in order to prevent having those assets liquidated in a Chapter 7 bankruptcy case. Doing so could look like bankruptcy fraud.
Mistake #3: Assuming That All Consumer Debt is Dischargeable
You should never assume that all of your consumer debt is dischargeable in a bankruptcy case, although much of it may be dischargeable. Before you file for bankruptcy, you should seek advice from an experienced bankruptcy lawyer about whether your debts are indeed dischargeable. If your major debts cannot be discharged, you may want to consider options other than bankruptcy for managing your debt.
Mistake #4: Avoiding Bankruptcy Because You are Concerned About Losing Assets
Many people wait too long to file for bankruptcy because they are worried about having assets liquidated. When you wait for an extended period of time before filing for consumer bankruptcy, you can worsen your debt situation. You should know that Chapter 13 bankruptcy does not require the liquidation of assets at all, and Chapter 7 bankruptcy only requires the liquidation of non-exempt assets. To be clear, you will not lose all of your assets regardless of whether you file for Chapter 7 or Chapter 13 bankruptcy.
Mistake #5: Failing to Seek Advice From a Lawyer
It is critical to seek bankruptcy advice from an attorney as soon as possible. Bankruptcy law in the United States is very complex, and it is essential to have an experienced lawyer who can ensure that you take all required steps to receive a bankruptcy discharge.
Contact an Oak Park Bankruptcy Attorney
If you are considering consumer bankruptcy, or if you are planning to file for bankruptcy and need assistance with your case, an experienced Oak Park consumer bankruptcy lawyer at our firm can begin working with you today. Contact the Emerson Law Firm to learn more about how we can help with your bankruptcy case. We routinely assist consumers with Chapter 7 and Chapter 13 bankruptcies, and we can provide you with more information about the consumer bankruptcy process.
See Related Blog Posts:
CFPB Considers Banning Medical Debt From Credit Reports
Less Common Bankruptcy Exemptions That Could Apply to Your Case
Mistake #1: Providing Inaccurate Information About Your Assets
You must disclose all assets when you file for consumer bankruptcy, even assets that you believe will be exempt under the Illinois bankruptcy exemptions. If you intentionally fail to provide the bankruptcy court with full and accurate information about your assets, including accurate information about their value, you could be putting your bankruptcy discharge at risk and could ultimately face allegations of bankruptcy fraud.
Mistake #2: Transferring Assets to a Family Member or Friend Before Your Bankruptcy Case
When you file for consumer bankruptcy, whether you are filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy, you cannot transfer assets to friends or family members before submitting your bankruptcy petition and required schedules in order to avoid having those assets counted as part of the bankruptcy estate or in order to prevent having those assets liquidated in a Chapter 7 bankruptcy case. Doing so could look like bankruptcy fraud.
Mistake #3: Assuming That All Consumer Debt is Dischargeable
You should never assume that all of your consumer debt is dischargeable in a bankruptcy case, although much of it may be dischargeable. Before you file for bankruptcy, you should seek advice from an experienced bankruptcy lawyer about whether your debts are indeed dischargeable. If your major debts cannot be discharged, you may want to consider options other than bankruptcy for managing your debt.
Mistake #4: Avoiding Bankruptcy Because You are Concerned About Losing Assets
Many people wait too long to file for bankruptcy because they are worried about having assets liquidated. When you wait for an extended period of time before filing for consumer bankruptcy, you can worsen your debt situation. You should know that Chapter 13 bankruptcy does not require the liquidation of assets at all, and Chapter 7 bankruptcy only requires the liquidation of non-exempt assets. To be clear, you will not lose all of your assets regardless of whether you file for Chapter 7 or Chapter 13 bankruptcy.
Mistake #5: Failing to Seek Advice From a Lawyer
It is critical to seek bankruptcy advice from an attorney as soon as possible. Bankruptcy law in the United States is very complex, and it is essential to have an experienced lawyer who can ensure that you take all required steps to receive a bankruptcy discharge.
Contact an Oak Park Bankruptcy Attorney
If you are considering consumer bankruptcy, or if you are planning to file for bankruptcy and need assistance with your case, an experienced Oak Park consumer bankruptcy lawyer at our firm can begin working with you today. Contact the Emerson Law Firm to learn more about how we can help with your bankruptcy case. We routinely assist consumers with Chapter 7 and Chapter 13 bankruptcies, and we can provide you with more information about the consumer bankruptcy process.
See Related Blog Posts:
CFPB Considers Banning Medical Debt From Credit Reports
Less Common Bankruptcy Exemptions That Could Apply to Your Case
Comments
Post a Comment