The Seven Deadly Sins in Filing for Bankruptcy Protection

Many of you are aware of the seven deadly sins in the Bible but you may not be aware that there are seven deadly sins found in filing for bankruptcy protection as well. Sin can be defined as missing the target. So, here are seven ways you can miss the target after filing for bankruptcy protection:

  1. Committing fraud. Bankruptcy fraud is a crime. Common fraudulent acts under bankruptcy laws typically involve concealment of assets, concealment or destruction of documents, conflicts of interest, fraudulent claims, false statements or declarations, and fee fixing. You can be prosecuted for bankruptcy fraud, and if convicted, you can spend time in jail and/or be fined.
  2. Failing to Appear at the Creditor’s Meeting. You are required to attend the creditors meeting to answer any questions the creditors or bankruptcy court has for you about your debts or income. You may get a reprieve the first time you miss the meeting if you have good enough excuse, but repeated misses may result in the bankruptcy court dismissing your bankruptcy.
  3. Failing to fill out your paper work correctly. Any paperwork the bankruptcy asks you to fill has to be filled out correctly or it can be another cause for your bankruptcy to be dismissed. This also means you must provide all the information requested. If your bankruptcy is dismissed for this reason, you will have to refile again.
  4. Failing to list all of your creditors. There is a time frame in which you can petition the bankruptcy court to add creditors you have forgotten, but once the bankruptcy has closed, any creditor’s debts left off your list cannot be discharged. Since it can be up to 8 years before you can file for bankruptcy protection again, the creditors can pursue you without the benefit of the bankruptcy court automatic stay.
  5. Filing the wrong type of bankruptcy. There are various types of bankruptcies that an individual, corporation, or partnership can file. These bankruptcies are designed to meet various and specific situations depending on your level of income, assets, and expenses. Filing the wrong bankruptcy can cost you time and money.
  6. Not filing in a timely manner. When you file for bankruptcy is just as important as knowing what type of bankruptcy to file. After you have filed for bankruptcy, you are not allowed to file again for a certain time frame. That is why it is important you know when to file. For an example, it is suggested by many that you should file a Chapter 7 only when you can see the light at the end of the tunnel.
  7. Being ignorant of bankruptcy laws. Bankruptcy laws are very complicated, and where you may have heard “ignorance is no excuse in the eyes of the law,” not understanding what there is to know about bankruptcy laws can cost you time and money. That is why it is probably wise to consult with a bankruptcy lawyer who can help you understand how the laws might apply in your particular situation.

Do not miss the target. Contact us today and we will help you find a bankruptcy attorney in your area.

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