Our Bankruptcy Blog

Common Mistakes to Avoid When Declaring Bankruptcy

When you file for bankruptcy, you’re essentially asking the court to relieve you of your debts. But the process is complicated, and if you make a mistake, it could cost you dearly.

Here are some of the most common mistakes people make when declaring bankruptcy, and how to avoid them.

1. Don’t Hide Your Assets

Trying to hide assets when preparing to file for bankruptcy can be a disastrous mistake. Bankruptcy courts are adept at detecting fraud and deception through thorough asset investigations.

Any income or assets you attempt to conceal will be found, potentially resulting in costly fines, additional financial penalties, and even criminal charges for bankruptcy fraud.

If you’re tempted to hide your money or resources from bankruptcy proceedings, remember that it will only make the situation worse.

The best choice is to completely disclose any and all assets so you can move through the bankruptcy process without hindrance or reproach.

2. Don’t Give Up

If you’re feeling overwhelmed by financial struggles and don’t know where to turn, remember that bankruptcy is an option available to help you get your life back on track.

Bankruptcy is a process in which an individual or organization seeks relief from their creditors, allowing them to make payments that are more manageable.

This can be accomplished by the liquidation of assets, restructuring of loans, or reorganization of debt payments.

Although bankruptcy processes should not be taken lightly, they may provide the relief that one needs during difficult times.

Many bankruptcy options are available for those in nearly any situation and seeking legal advice about bankruptcy from an experienced bankruptcy attorney can ensure you understand all the implications and consequences.

Don’t give up – there are options available to help you get back on your feet and avoid mistakes.

Avoiding the common bankruptcy mistakes


3. Don’t Accrue More Debt

Falling into debt can be an incredibly stressful and overwhelming experience, but it’s important not to let it spiral out of control.

Seeking professional help in managing your debt can make a huge difference, especially while bankruptcy is on the horizon.

Professional financial advisors not only have specialist knowledge on the best debt relief solutions available, but they can also provide crucial guidance during the tough times faced by those drowning in debt.

Furthermore, if bankruptcy is unavoidable, consulting an expert means you are more likely to find the right solution for your particular needs and situation. So don’t continue piling on more debt.

4. Avoid Using Credit Cards or Taking Out Loans

Navigating bankruptcy proceedings is a difficult task, and it is important to proceed with caution. One of the best ways to protect yourself during this process is to avoid taking out any further loans or using credit cards.

Although it may be tempting to rely on these short-term solutions, they can lead to more debt in the long run and often make the situation worse.

In extreme cases, a court may even deny a bankruptcy discharge if additional loans were taken out while going through the process.

To keep your finances stable as you deal with bankruptcy proceedings, it is important to forego such solutions and seek counsel from an experienced bankruptcy attorney instead.

In Conclusion

If you’ve been struggling with debt and don’t know where to turn, it’s important to know that you aren’t alone.

There are options available to help get you back on your feet, but whatever path you choose, don’t forget to cover all your bases and avoid mistakes.

Make sure to be careful not to let your debt spiral out of control. Seeking professional help as soon as possible is key to getting back on track.

Additionally, avoid using credit cards or taking out loans while in bankruptcy proceedings – this can further exacerbate financial problems.

While taking the step to file for bankruptcy may feel overwhelming, it could also be a process of new beginnings that provides much needed relief and support.


hiring an attorney to help file bankruptcy


Hiring an Experienced Bankruptcy Lawyer

It’s important to hire an experienced bankruptcy attorney as one of the steps to take when you’re facing bankruptcy and you are worried about credit rebuilding after.

This is because there are many different types of bankruptcy. Only an experienced lawyer will know which one would work best for your specific situation.

It might seem like it makes sense to do this yourself. But most people don’t have the time or patience to understand all of the intricate details involved in bankruptcy.

That means they make mistakes by not choosing the right type, or by not filling out paperwork correctly. Both things could lead to delays and ultimately hurt your chances of getting any debt relief at all.

This is not a journey to take lightly, but it is also not one to take alone. If you need to file for bankruptcy, reach out to us today to start your journey with us.

If you want to learn more about the options you have and the steps to take, call us for a free consultation.


Rebuilding credit after bankruptcy? Parker & DeFresne can help!

Parker and DuFresne

Parker and DuFresne