There are numerous times in life that you may cause you to deal with financial stress. Of course, if you don’t have the money to pay your bills, you may need to act. One of the things you can do is file for bankruptcy to relieve your mind and your wallet. Successfully obtaining this status can allow you to stress less about your bills by having some of these discharged for you.
However, you’ll want to do the right things and avoid the wrong moves. Being aware of several mistakes you don’t want to make when filing for bankruptcy may be helpful.
1. Being untruthful about your income
You can count on having to show what you earn annually when filing for this status. The last thing you’ll want to do is be untruthful about this amount.
It’s necessary to show proof of this figure by providing a W-2 or past tax statement. Doing this can be an effective method of explaining what you truly earn. However, trying to deny your real income is fraudulent and could even land you in trouble.
2. Not keeping records
You may need to maintain a diary of all the events of your bankruptcy. This can range from the day you filed to even meeting with an attorney.
Keeping track of all the occurrences can allow you to know exactly what’s going on and will alert you to updates. You’ll want to remember that it may take up to four months for you to hear back from your bankruptcy status.
3. Doing it solo
Working with an attorney is well worth the effort and the cost it may take. This individual has the expertise to file for bankruptcy for you, and you won’t have to worry as much.
This can be a complicated procedure and having a professional that truly understands all of the aspects of it is ideal. The last thing you’ll want to do is get overly confused and unable to understand this process thoroughly.
4. Increasing credit card debt
It’s highly likely that you may have a lot of credit card debt that you’d like to get rid of in this process. It can be straightforward to run it up in a hurry, and this can lead to costly interest.
However, you should keep in mind that all of your debt will be closely viewed. If you continue to run up deficit after filing for this status, this could hurt you a great deal.
You’ll want to be sure to pay in cash for all the things you pay once the papers have been filed for bankruptcy.
5. Cashing in your retirement
Saving money to retire is a fantastic idea and one that you’ll want to do. However, adding to your account when you are financially struggling is something you may need to put on the back burner.
However, never take money out of your retirement to pay off your debt. You may be faced with high fees and steep penalties if you do this one thing.
You can successfully file for bankruptcy, and this may relieve your mind and your worries. The key to having the right level of results in doing so will rest on your actions. Avoid making the wrong mistakes, and you’re sure to make this a much less challenging process. Take control over your life and your financial situation by making the right moves and simply ensuring you don’t invest time in the wrong ones!
