Bankruptcy Mistakes

Common Bankruptcy Mistakes

Chicago Bankruptcy Guidance

If you are considering filing for bankruptcy, it is important to ensure that you do not make one of the common mistakes that many individuals have made in the past. A Chicago bankruptcy lawyer from our firm can help ensure that you take the rights steps and perform the right activities so that you can obtain the debt relief you need. You should do all you can to make sure that you do not make mistakes before you have even begun. It is not uncommon to make a mistake if you are not aware of the ins and outs of the law that pertain to bankruptcy.

The best step you could take to prepare yourself is to retain the legal assistance of Joseph P. Doyle. We can help you avoid the following dangerous, yet common, bankruptcy mistakes.

#1: Not Choosing to File Under the Right Chapter

When filing for bankruptcy, it is important to ensure that you know the right chapter to file under. Filing under the wrong chapter could cause a major setback in your debt relief. Many individuals file under Chapter 13 when they should have filed under Chapter 7. Before you file under this chapter, it is important to ensure that you have obtained feedback from a trustworthy bankruptcy attorney. Chapter 13 is much more costly and lasts for a longer period because it involves the debtor actually paying back the funds. In comparison, an individual who wants to protect some of their assets should not file under Chapter 7.

#2: Waiting Too Long to File

If you are aware of the troubles you are facing with your debt issue, one of the main mistakes you could make is to wait too long to speak with a bankruptcy attorney. In an abundant number of cases, the debtors can save a substantial amount of money if they address the issue sooner rather than later. If your debt issue is the result of the loss of a job, you should not wait to regain employment before filing. Whether you are underemployed or unemployed, and you are considering filing for bankruptcy, take the necessary steps at once.

#3: Refusing to File Bankruptcy as a Solution to Debt

Many individuals refuse to consider bankruptcy. There are many individuals who experience debt problems who do not choose to file because they are afraid of its effects on their credit or for other reasons. You should be aware of the myths about bankruptcy if a bias is affecting your decision. Many individuals do not wish to file because of the negative connotations spread by the media. Even if you are faced with losing your assets, it can provide you with a clean slate.

#4: Incurring Debt After You Have Considered Bankruptcy

After you begin filing for bankruptcy or are even seriously consider it is an option, it is not in your best interest to begin incurring more debt. Do not start charging up credit cards or taking payday loans before filing. If you have made the decision to file, it is important to be careful and not to incur added debt. It may be considered a criminal act if you take loans without the intention to pay them back. It may also be considered fraud and likely terminate your chance at bankruptcy.

Understanding Bankruptcy Law in Chicago

There are many circumstances that can result in the need to file for bankruptcy. When these take place, it is essential to ensure that you are as prepared as possible for your case. Our Chicago bankruptcy attorney believes that part of that preparation process is to understand the mistakes that others have made in the past.

Please take the time to discuss your case with our firm as soon as possible!

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