3 tips for a successful bankruptcy | Reed Law Firm, P.A.

3 tips for a successful bankruptcy

On Behalf of | Jan 13, 2022 | Bankruptcy |

Bankruptcy offers lasting debt relief, but mistakes in the process could derail your financial goals and even leave you with additional problems. By following a few simple tips, you can avoid unnecessary complications and increase your chances of obtaining the debt relief you need.

Be prepared

You are going to need a lot of information about your financial situation to successfully begin the bankruptcy process. Required documents include bank statements, lists of assets and tax returns. Problems will arise right out of the gate if you aren’t able to gather this information. For instance, some people haven’t filed their taxes in recent years due to financial hard times. Lacking this necessary information would stop them from being able to file for bankruptcy.

Give accurate information

Ballpark estimates aren’t going to cut it when you are providing your financial information during the bankruptcy process. You must give accurate information regarding your income, your assets, the value of your property and other items—and have the documentation to back up your claims. Providing the wrong information, even inadvertently, could lead to accusations of bankruptcy fraud, which will leave you with a heap of additional legal problems in addition to your debt situation.

Don’t rack up additional debt prior to bankruptcy

A bankruptcy judge will closely scrutinize your spending and accumulation of debt in the months leading up to your bankruptcy. If you have incurred additional amounts of debt on non-essential items, this will not reflect favorably upon you in court. Act in good faith to your creditors and you will be in a much better position to enjoy the debt relief that bankruptcy provides.

Bankruptcy is a powerful legal tool that has helped numerous people in South Carolina escape debt problems and move on to a better future. By doing everything right on your part, your chances of success will increase.

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