Being in debt is no fun. Struggling to make it from one month to the next can be frustrating and leave you feeling overwhelmed. Instead of being in debt over your head, you can turn to bankruptcy to get back on your feet and on the path to financial freedom. If you do decide to file for bankruptcy, there are a few things you need to keep in mind. Don't make one of these costly mistakes in your case.
Paying off certain creditors.
Just because you owe your family member money, that doesn't mean you can pay them off to prevent having to put them in your bankruptcy case. Regardless of who it is, you need to make sure everyone is listed in your case. The trustee could end up making that person return the money you paid them to the court to be distributed to your other creditors. This is only going to compound the situation and make it worse. You can discuss any concerns you might have with a bankruptcy attorney like http://timgeorgelaw.com before the filing of your case.
Transferring property before filing your case.
All too often, people assume that they are going to lose their boats, cars, ATVs, snowmobiles and so on. To prevent losing them in a bankruptcy proceeding, they transfer them to someone else before their case is filed. Unfortunately, this is one of the worst things you can do. There are a number of different exemptions you can claim to keep your assets protected. Discuss your options with the attorney to find out what is protected and what isn't. You might be surprised to find out just how much you can claim as an exemption on your case.
Attempting to deceive the trustee handling your case.
Along with every bankruptcy case comes a hearing in front of the trustee. When the trustee asks you questions, you better make sure to answer them truthfully. If you are caught lying to the trustee, it could end up causing your case to be thrown out and your money is down the drain. In turn, you have to start your case all over again, which means more money and a longer wait for your discharge. Even if you don't think an issue is important, you are better off telling the trustee about it than you are trying to hide it.
To make sure your case goes through without any complications, make sure to follow the tips above.