Since filing for Chapter 13 bankruptcy requires really lot of paperwork, make sure you have collected all needed forms and filled every of them correctly. It is strongly recommended to use the service of bankruptcy attorney to be sure all is done at its best.
Give in to a temptation to move your assets before filing for bankruptcy. It’s an important factor to be honest with the bankruptcy court. Once your attempt (successful or unsuccessful) of selling, moving assets prior to filing is detected, you lose all the chances to succeed in your bankruptcy.
Failing with the schedule. This is one of the most often reasons of failing with Chapter 13 bankruptcy. There is a special schedule for papers delivering into the bankruptcy court and if you do not match it – be prepared for having your petition denied (one more argument to consider the lawyer).
Starting to file for bankruptcy Chapter 13 without completing credit counseling. It’s an obligatory procedure if you want to receive debts discharge. You have to get credit counseling from the certain (approved) agency. Without completing it your petition will be dismissed by the bankruptcy court.
Not feasible repayment plan. This aspect is crucial in your Chapter 13 successful filing. You have to make reasonable, realistic repayment plan, based on your actual income and necessary monthly expenses. It is strongly recommended that financial specialist and an attorney are involved into making great repayment plan which will be approved by the court.
Self representation in the bankruptcy court. Well, if you don’t want to involve bankruptcy lawyers into your case you should be ready to spend enormous efforts on researching and studying bankruptcy rules and regulations. Statistically, major amount of cases were dismissed by the bankruptcy court exactly because of the wrong paperwork.
Getting new debts, selling a property couple month prior to the filing. The lack of knowledge may cost you thousands, so when you are just on the stage of making decision about filing for bankruptcy Chapter 13, call an attorney for the first consultation about potentially wrong steps.
Making “preferential payments”. After your case is on, it is prohibited to pay debts to the chosen by you creditors. If you’ve made payments to the creditors who belong to your family, a Trustee may cancel those payments and withdraw money back.
To sum it up we should say that filing for bankruptcy is really difficult and time-consuming, but not impossible. Your chances to receive a discharge or get a time for your debts reorganization significantly increase with the professional assistance of bankruptcy lawyers. Normally, attorneys provide you with free first consultation, based on your brief case description.
To make the “warning list” complete, note, that there is one more important aspect you should not mess up with. After your Chapter 13 bankruptcy petition is approved you should make payments strictly on time, otherwise your case could be reconsidered and all your efforts and expenses on filing are wasted.