5 Bankruptcy Mistakes to Avoid: What Can Hurt You in Bankruptcy

August 31, 2015

Bankruptcy is a viable debt relief solution that can give people a much-needed financial fresh start. When certain mistakes are made before or during bankruptcy, however, the benefits of bankruptcy can be lost, as people may sabotage their cases and be unable to obtain debt relief from the process.

Below, we’ll point out some of the more common bankruptcy mistakes to avoid making so that you are able to realize all of the benefits that bankruptcy has to offer.

Don’t Make these Bankruptcy Mistakes

  1. Avoid these bankruptcy mistakes to avoid compounding your debt issues, experienced Colorado Springs bankruptcy lawyers explain.

    Avoid these bankruptcy mistakes to avoid compounding your debt issues, experienced Colorado Springs bankruptcy lawyers explain.

    Forgetting about the credit counseling requirement – Within 180 days of filing for bankruptcy, you’ll need to attend a credit counseling course. If you don’t and you don’t qualify for one of the rare exceptions, your bankruptcy case could be dismissed, and you’ll have to wait another 180 days before you can file again. This can end up exacerbating your debt situation.

  2. Running up your debt within a few months of filing – While it can be tempting to rack up new debt when you know you’ll be filing for bankruptcy (and a discharge) soon, doing this can constitute fraud, resulting in a dismissal of your case (and possibly even criminal charges, depending the circumstances).
  3. Tucking away some assets before filing – This is another dangerous bankruptcy mistake to make because trying to hide assets before filing for bankruptcy can also constitute fraud and result in a dismissal of your case. Also, remember, you may be able to retain a good portion of your assets via Colorado bankruptcy exemptions. So explore these options, rather than trying to hide assets in bankruptcy.
  4. Not being completely truthful on your bankruptcy paperwork – Lying on your bankruptcy paperwork (either by failing to disclose things or blatantly misrepresenting your financial situation) can also be a form of bankruptcy fraud that will immediately halt your case (and can potentially lead to criminal fraud charges).
  5. Waiting too long to file – If you have been receiving warnings that creditors are taking action to garnish your wages, repossess your property, sue you, etc., don’t wait to file for bankruptcy. This is because filing can help you put an immediate stop to these creditor actions due to the automatic stay in bankruptcy, which will prevent creditors from being able to move forward with these actions.

Contact the Colorado Springs Bankruptcy Lawyers at the Law Office of Jon B. Clarke, P.C.

Are you struggling with debt and ready for a financial fresh start? If so, it’s time to contact the trusted Colorado Springs bankruptcy lawyers at the Law Office of Jon B. Clarke, P.C.

To find out more about your best debt relief options, as well as how we can help you obtain the financial fresh start you need and deserve, contact us today by calling (303) 779-0600 or by emailing us using the contact form on this page. We also encourage you to complete our Business or Consumer Debtor Analysis Form so that we can provide you with professional advice that is as specific and helpful as possible.

From our offices based in Denver and Greenwood Village, we provide people throughout Colorado with the highest quality debt relief legal services.

Categories: Bankruptcy Mistakes