The process of declaring bankruptcy is both difficult and stressful. There’s what’s called the wage earner's plan, commonly known as Chapter 13 bankruptcy, that offers people a workable way to manage their debt and get back on solid financial footing. When someone files for Chapter 13 bankruptcy in Baltimore, there are a number of common mistakes they make that can seriously harm their case.
With appropriate information, you can avoid the traps. These are the critical errors you might make when filing for assistance. You must do the right thing if you want to increase your chances of making wise decisions and getting a fresh financial start. A misstep due to being partly uninformed in the process is surely not the way to go.
Here are the errors and how to prevent them:
Failing to Seek Professional Guidance
Your biggest mistake could be trying to figure out the complicated bankruptcy procedure on your own. Working with a skilled bankruptcy lawyer guarantees that your case will be handled properly. You must have someone who comprehends the law, can give you advice, and can guide you through a court proceeding.
Incomplete or Inaccurate Documentation
The submission of all the paperwork when filing for Chapter 13 bankruptcy is vital. Lack of documentation or inaccurate records can have serious repercussions for the petition. It can result in the dismissal of your case. Present to the court all pertinent documents, such as tax returns, pay stubs, bank statements, and debt details.
Underestimating Living Expenses
Debtors who file for Chapter 13 bankruptcy must make a payment plan that enables them to live on a budget and settle their obligations over a timeframe of three to five years. Make sure that your schedule is practical. It’s a common error to undervalue your monthly expenses, such as rent, utilities, transportation, food, and healthcare. Guard against it. Read on for more common Chapter 13 bankruptcy mistakes to avoid.
Lack of Communication with Creditors
Complications may arise if creditors are not informed of your bankruptcy petition. Keeping creditors informed when filing for Chapter 13 bankruptcy is a must. It is wise to give those you owe your lawyer's contact number and to keep them updated on any changes that might affect your ability to make payments.
Mishandling Property and Assets
Debtors who file for Chapter 13 bankruptcy can maintain their possessions while paying their debts through a court-approved payment plan. However, hiding or selling them can hurt your case. Accurately disclose all of your assets and be aware of the bankruptcy law exemptions. Failure to do so could lead to fraud accusations.
Not Attending Required Meetings
Chapter 13 bankruptcy will require you to attend mandatory meetings and courses. Failure to be there for them can have severe consequences and could result in the disapproval of your application. Mark the dates of your meetings and courses on your calendar. Make sure to show up.
A Fresh Start After
Bankruptcy can put an indelible red mark on your credit report. If everything’s done properly, Chapter 13 can eventually get you out of that abyss of debt and allow you to regain control of your finances. Keep in mind to avoid those common errors that could hurt your application for Chapter 13 bankruptcy in Baltimore. Hire a professional with Richard Hackerman. Chances are, you can have a brand-new financial start and finally move on to a brighter future. Call us at 410-243-8800 or 888-243-5500 for a free consultation.