If you are considering filing for bankruptcy, you need to fully prepare for the many obstacles that can arise during the process. Failing to sufficiently prepare or taking incorrect steps during the bankruptcy process has the potential to significantly jeopardize your future. So that the bankruptcy process can continue as smoothly as possible, this article has been created to inform an individual who is planning for bankruptcy about various things that must be avoided before filing for either Chapter 7 or Chapter 13 bankruptcy.
Error #1: Treating Family Members Differently Than Other Debtors
Many individuals who have significant debt and who must ultimately file for bankruptcy believe that it is permissible to treat family members more preferentially than other debtors. This type of activity is not allowed, however. A bankruptcy trustee is able to reclaim any amount that a person repays to a family members within two years of filing for bankruptcy. As a result, individuals should treat family members like any other person to whom the individual owes money and wait to repay them. After the bankruptcy process is over, an individual will be able to pay back anyone that he or she chooses.
Error #2: Not Appearing at Court Proceedings
Some individuals falsely believe that they are able to avoid state or federal cases that are pending against them simply because the individual filed for bankruptcy. Due to failure to appear for a case, a person can experience a variety of penalties including fines and even jail time. Avoid this error by attending all important cases until a bankruptcy case is filed and then make sure with your attorney that you do not need to attend a case.
Error #3: Not Being Entirely Honest With Your Attorney
It is not uncommon for individuals to feel embarrassed about their current financial situation. As a result, some individuals lie about their situation to their attorney in the hopes that they will not look as bad. As a result of these lies, an attorney will not be able to represent a client to the best of his or her ability because an attorney will not know everything that needs to be addressed. As a result, a person might lose important assets, have the bankruptcy case denied, or even face substantial fines. It is important to avoid this error by telling your attorney all important details about your bankruptcy case.
Reasons to Contact a Seasoned Oklahoma Bankruptcy Attorney
Being faced with large amounts of debt can be a frightening situation. While bankruptcy has the potential to solve these problems, many individuals quickly discover that bankruptcy involves a unique and complex body of laws that can be difficult to navigate. To obtain the assistance that you need in a bankruptcy case, obtain the assistance of a seasoned bankruptcy attorney who know what it takes to make sure that your case resolves in a positive manner. Since 1982, individuals in Oklahoma City and the surrounding area have discovered that Jim A. Lyon has the skill necessary to help them through their bankruptcy filings. Consider contacting attorney Jim A. Lyon today by calling (405) 843- 0461 or complete and submit our firm’s online form.