In this article, you can discover…
- Common errors to avoid when filing for Chapter 7 bankruptcy.
- The consequences of not listing all creditors as you file.
- The importance of documents and deadlines when filing for Chapter 7 bankruptcy.
How Can Failing To Complete The Means Test Correctly Affect Your Chapter 7 Bankruptcy Case?
Failing to correctly fill out the means test could lead to two different outcomes. In one scenario, you could believe that you qualify for Chapter 7 bankruptcy, but you don’t, as a deduction or stream of income was not properly reported in the means test.
In another situation, you may incorrectly believe you don’t qualify because you have failed to take deductions that would not have counted against you. Understanding the means test and filling it out correctly is crucial, so reviewing the document with a bankruptcy lawyer beforehand is important.
Why Is It Important To Disclose All Assets When Filing For Chapter 7 Bankruptcy?
First and foremost, you’re swearing under oath that you have disclosed all of your assets. That could have serious consequences if it is discovered that you own assets that were not disclosed in the schedules. From an ethical point of view, you have an absolute obligation to disclose all of your assets.
Can Transferring Assets Before Filing For Chapter 7 Bankruptcy Lead To Problems?
Potentially, yes. If you transfer assets before filing for bankruptcy, you must still disclose those transfers in a statement of financial affairs. This documents who the asset was transferred to and the consideration that paid for the transfer. Transferring assets will still raise the question of what you did with the money associated with that transfer, and those questions will need to be answered.
You can’t simply transfer assets into someone else’s name. But you do have the right to, for example, transfer a car by selling it. This simply needs to be disclosed when filing for bankruptcy.
Attorney Mike Wallace is a focused bankruptcy lawyer serving Texas. For nearly 20 years, he’s helped clients just like you navigate Chapter 7 bankruptcy, making the process simpler to understand and avoiding the serious mistakes that could lead to a dismissal.
Have questions or concerns about Chapter 7 bankruptcy? Reach out to Mike Wallace, P.C., at (888) 402-5557 today!
What Are The Consequences Of Running Up Debt Before Filing For Chapter 7 Bankruptcy?
Running up debt makes that debt non-dischargeable, meaning the debt run up before filing will still be there, waiting to be paid off after you come out of bankruptcy.
This can have negative consequences, and it’s best not to run up debt before filing.
What Are The Risks Of Not Listing All Creditors In Your Bankruptcy Petition?
You may realize that you owe money to a creditor, but you don’t have enough information from them to properly list them. You may have simply gotten a phone call and not yet received their contact and other information.
Fortunately, the current law states that if you file a no-asset Chapter 7 bankruptcy and fail to list a creditor, that creditor still gets discharged as long as the debt was incurred before the bankruptcy petition was filed.
Why Is It Crucial To File All Required Documents Accurately And On Time?
When you file bankruptcy, you swear under oath that your schedules are accurate. If they’re not and someone learns that they’re not accurate, then it could have such serious consequences that your bankruptcy could be dismissed.
There are time frames in which certain documents must be filed and information disclosed to the bankruptcy trustee. If this isn’t done, it can lead to certain documents being dismissed by the court or the whole bankruptcy petition being dismissed.
It is very important that the information in all documents is accurate and that they are submitted on time. To this end, having a knowledgeable attorney review and file all documents with you is central to ensuring your petition is filed correctly and that past creditors are discharged.
For more information on Mistakes To Avoid When Filing Chapter 7 Bankruptcy, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (888) 402-5557 today.
Attorney Mike Wallace is a focused bankruptcy lawyer serving Texas. For nearly 20 years, he’s helped clients just like you navigate Chapter 7 bankruptcy, making the process simpler to understand and avoiding the serious mistakes that could lead to a dismissal.
Have questions or concerns about Chapter 7 bankruptcy? Reach out to Mike Wallace, P.C., at (888) 402-5557 today!
