If you are considering filing for bankruptcy, it’s important not to do anything that could harm your chances of acceptance.
Here are two such things to avoid:
1. Making one last big purchase
Bankruptcy courts typically allow you to keep a few essentials. Maybe that’s your car to get around, or your tools to carry out your trade. Now may seem like the perfect chance to upgrade them for free – you may think you can buy the item on credit just before filing, get the debt written off and the court will let you keep it as exempt property. Forget it. Creditors will note any big last-minute purchases you make and can report them to the bankruptcy court. If the bankruptcy trustee believes you made this purchase with full knowledge you were about to file, they may take it off you, or exclude it from the filing.
2. Failing to declare all your assets
It can be tempting to try and hide any money you still have so that life is a little easier after bankruptcy. After all, a few hundred or a thousand is a lot more valuable to you right now than to the financial institutions you owe. Or, maybe, you just figure that no one will be the wiser if you don’t mention the Bitcoin you invested in, hoping to fund your child’s college fees.
You are obligated to present an accurate and complete picture of your financial affairs when filing for bankruptcy, so don’t even consider not doing so, as that could jeopardize your filing and potentially cause you more problems.
If you wish to file, it is important to do so correctly. Learning more about how to do this will be time well spent.
