Avoiding Mistakes When Filing for Chapter 7 Bankruptcy

1. Not Hiring An Experienced Bankruptcy Attorney

Filing for chapter 7 bankruptcy can be a complex legal process with many steps. It is vital to have an experienced attorney by your side to guide you through the process and ensure that all documentation is filed, including exemption claims, schedules, and other necessary paperwork. By working with an attorney, you can avoid making costly mistakes.

2. Failing to Include All Assets and Debts

When filing for chapter 7 bankruptcy, you must include all your assets and debts. This includes all sources of income, bank accounts, cars, homes, and personal property. If you fail to include all your assets and debts, the bankruptcy court could dismiss your case, and you could face fines or even criminal charges. It's essential to be completely transparent about your financial situation to avoid any legal or financial problems later.

3. Transferring Property Before Filing for Chapter 7 Bankruptcy

Transferring property, such as a vehicle or real estate, to a friend or family member before filing for chapter 7 bankruptcy in California is a common mistake. The bankruptcy court will look back over the past two years of your financial activity, including any property transfers. If any transfers appear fraudulent, there could be serious legal consequences such as case dismissal or loss of discharge.

4. Failing to Take Approved Credit Counseling Courses

Before filing for chapter 7 bankruptcy, you must complete credit counseling courses. This is important, as it will provide you with financial education, budgeting advice, and other valuable skills to help prevent future financial struggles. If you fail to take approved credit counseling courses, your bankruptcy case could be dismissed.

5. Not Being Honest with Your Bankruptcy Attorney

Honesty is key when working with a bankruptcy attorney. Being forthright about all aspects of your financial situation is critical to achieving a successful outcome. If you're embarrassed or don't want to confront some aspects of your finances, it could result in irreparable harm to your bankruptcy case. Your attorney is there to help you get back on track, so it's crucial that you're open and honest.

Filing for chapter 7 bankruptcy can be overwhelming, confusing and stressful. However, by avoiding common mistakes such as failing to include all your assets and debts, transferring property before filing, working with an experienced attorney, taking credit counseling courses, and being honest with your attorney, you can increase your chances of achieving a successful outcome. At California Southern Attorneys, A.P.C, we have years of experience handling bankruptcy cases. Contact us today for a consultation.