Filing for Chapter 13 bankruptcy offers quick relief from overwhelming financial problems. Unfortunately, your application won't bear fruits if you make errors when filing. Errors usually delay the process and may lead to a denial of the application altogether. In case of denial, you have to invest more time and money to appeal the decision.
Therefore, you can't afford to make mistakes in your bankruptcy application. One way to do that is by working alongside a bankruptcy lawyer. Through their experience and proficiency in the law, they'll help you prepare a perfect document devoid of errors. This article shares common errors people make during bankruptcy applications.
Presenting a Questionable Repayment Plan
The court must be convinced that you can pay back your debts after applying for bankruptcy. For instance, they will want you to present a repayment plan that indicates how and when you plan to clear your debts. The judge is also interested to know whether you have the cash to meet all your obligations.
Failure to prove that you have the financial capabilities to clear your debts can lead to a denial of your application. This shows the importance of working with a legal practitioner before filing a claim. A lawyer offers you legal advice and tips in preparing an acceptable repayment plan.
Excluding Some Vital Information
Leaving out essential information when applying for bankruptcy can negatively affect your case. For example, misrepresenting your debts, misreporting your debts or assets, or hiding some of your property can spur a court battle. Your creditor or bankruptcy trustee might ask the court to reject your application if they discover your dishonesty. But having a lawyer by your side enables you to evade such a mistake. That's because they will ensure you've disclosed all your assets and money while submitting the application.
Failing to Seek Professional Legal Guidance
Handling the bankruptcy application process alone is a recipe for failure. There is a high chance of making a mistake that will mess up your application. Besides, you might not know the bankruptcy plan that will offer the best reprieve for your situation. On the other hand, an attorney assures you of finding the much-need relief from your creditors.
Of course, your bankruptcy application will be more beneficial if it goes through in your first submission. For that reason, it's best to work with a bankruptcy attorney since they have adequate experience and legal knowledge to prepare an accurate application.