Harris S. Ammerman, ESQ has filed many bankruptcy cases over the years. This experience has revealed many individuals who, having dealt with less knowledgeable attorneys, suffered unfortunate outcomes. These individuals made significant, but avoidable mistakes. During a bankruptcy, even a small error can have a cost. In order to help you from jeopardizing your outcome, ensure you avoid
these common bankruptcy mistakes.
1. Listening to Friends and Family – All too often, people look to friends and family for legal advice. However, despite their best intentions, they are not legal experts and can damage the possibility of a favorable bankruptcy.
2. Not Hiring an Expert Bankruptcy Lawyer – Those attorneys who do not specialize, or handle bankruptcies as a regular part of their practice, can overlook pitfalls. Simply, they lack the expertise to be effective.
3. Not Including Your Business – Especially if you are a sole proprietor, your business may have no value to anyone other than you. Regardless, it is up to the trustee to make the final decision.
4. Providing an Incomplete List of Creditors – List all your creditors, even if you are a co-signer. For the best outcome, you must list all balances owed. Whatever you don’t list may not be discharged. Neglecting to List All Assets – One of the easiest and most common ways to lose your discharge is not listing all your assets. Trust your attorney will work in your best interest, and will properly deal with assets for the best outcome.
5. Filing with a Tax Return Pending – Filing a bankruptcy when you are receiving or just received a large tax return (more than $1,000 per working person) can create problems. It is best to talk to a bankruptcy attorney for the best advice.
6. Trying to Protect Assets – Some people will transfer assets in the name of a family member before filling. This is not the way you protect your assets, and they can be recovered.
What haven’t we covered yet that is important to you? If you would like to talk about common bankruptcy mistakes to avoid, or need more information, please contact us.