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Avoid These Common Bankruptcy Mistakes

If you plan on filing for bankruptcy, you need to understand what to do—and what to avoid—in order to make your bankruptcy a success. Although there are many potential pitfalls associated with the bankruptcy process, you can easily avoid most of them if you know what to look out for.

Common Bankruptcy Mistakes

Below are the most common mistakes debtors make during the bankruptcy process. For additional assistance with the Chicago bankruptcy process, please contact a Chicago bankruptcy attorney.

Hiding Assets

In an attempt to hold on to their assets, debtors sometimes hide them from the court. This is not a good idea. Not only can it jeopardize the bankruptcy proceeding, but’s it’s against the law. When you file for bankruptcy, you are required by law to disclose all your assets to the court.

Not Listing All Creditors

Bankruptcy is complicated, and debtors are often confused by the process. Sometimes, due to this confusion, debtors fail to list all of their creditors in their bankruptcy filings. This can create big problems down the road. If you fail to list all of your creditors in your bankruptcy case, you can lose the opportunity to discharge certain debts. This means that you’ll be on the hook for the debts you forgot to list. 

Making Payments Immediately Before Filing for Bankruptcy

Some people try to pay back as much as they can before filing for bankruptcy. Although this is admirable, it is a big mistake. When a debtor pays back a creditor or family member prior to filing for bankruptcy, the bankruptcy court considers this a preferential payment. The recipient of a preferential payment must return it to the bankruptcy court.  

Running Up Your Credit Before Filing

Some people think it’s a good idea to run up their credit cards prior to filing for bankruptcy. It’s not. If you make large purchases on credit before you file for bankruptcy, the court may require you to pay the money back. 

Delaying Filing for Bankruptcy

Finally, if your debt is getting out of control, the last thing you should do is sit around and hope things get better. If you are already unable to pay your bills, you should consider filing for bankruptcy. However, in order to determine whether bankruptcy is the right choice for you, you should contact a Chicago bankruptcy attorney as soon as possible. 

Contact Our Experienced Chicago Bankruptcy Attorneys 

If you plan on filing for bankruptcy in Chicago, Illinois, you need a Chicago bankruptcy attorney on your side. At Chicago Bankruptcy Clinic, our knowledgeable Chicago bankruptcy attorneys will handle all the details of your Chicago bankruptcy filing with efficiency and professionalism. When you come to our experienced bankruptcy attorneys for assistance, you can rest assured that we will handle your bankruptcy professionally and expediently. Please contact us today to schedule a free consultation with one of our talented bankruptcy attorneys.