For many people, filing for bankruptcy is a very weighty decision. Once they decide to pursue this solution for financial relief, further determinations exist, such as whether Chapter 7 or Chapter 13 bankruptcy is more appropriate for their situation. Individuals must consider how each option will impact their lifestyle and which makes the most sense for their future financial prospects. In this article, we will discuss the three most significant steps people can take to ensure their bankruptcy goes smoothly and puts them on the path they wish to take for the next phase of their life. Here are some of the keys to bankruptcy success.
Suppose you are considering a bankruptcy filing and are unsure how to begin. In that case, you can do some basic research at the American Bankruptcy Institute (ABI) or the National Association of Consumer Bankruptcy Attorneys (NACBA) to garner general and reputable bankruptcy information. However, remember that while some bankruptcy law is federal, guidelines vary by jurisdiction – meaning you will want to seek out a local resource expert to understand the rules, regulations, and procedures that apply where you live.
Aside from having a basic knowledge of the bankruptcy process, there are two critical components to assuring bankruptcy success as much as possible- be honest in your documentation, and enlist the help of an experienced bankruptcy attorney.
Honesty Really is the Best Policy
During a bankruptcy proceeding, being honest with yourself about your situation and debts is vital. Complete transparency with your bankruptcy attorney, the trustee assigned to your case, the bankruptcy court, and the creditors associated with your obligations is equally imperative.
The statement of financial affairs requires complete disclosure of assets and liabilities. This is a necessary first step for any bankruptcy and will be submitted to your attorney to establish a clear understanding of your financial status. An experienced bankruptcy lawyer will use this statement to recommend the best action for your situation. At this point, your attorney will also explain your obligations, rights, and how the law applies to your scenario. Without an honest reckoning of your financial situation, your attorney cannot provide the most appropriate advice – which may affect the outcome of your proceedings.
Honesty is critical throughout the entire bankruptcy process, not only to ensure that the case goes smoothly but to prevent being disciplined by the court if lies are discovered. Hiding or “forgetting” to list assets in bankruptcy is considered dishonest, as is lying to the bankruptcy judge. These actions can have serious consequences, including the dismissal of your case and legal penalties for perjury.
The Importance of Hiring – and Listening to – a Bankruptcy Attorney
Doing upfront research and remaining honest throughout the process will go a long way to ensuring a successful outcome to your bankruptcy. Still, the final necessary component is hiring a local Sarasota bankruptcy attorney to help you through the process. Retaining a lawyer is not very useful, however, if you don’t follow their advice and counsel. Bankruptcy law is specific and detailed, and protocols must be followed for the case to succeed. The bankruptcy process has inherent obstacles that must be avoided or effectively managed. Timelines and deadlines are essential, and paperwork or meetings that seem pointless to you may be mandatory to the court. Following all established process rules can mean the difference between a successful discharge of your debt and the court dismissing your case outright.
Your bankruptcy attorney is working on your behalf to navigate you to a successful outcome. You can be assured that if your attorney has indicated a need to submit a particular document, attend a meeting, appear in court, or meet a deadline, the action is necessary for your case.
If you need more information, call the offices of Richard V. Ellis, Sarasota bankruptcy attorney. We are here to explain the process from start to finish and provide the expert guidance you need to achieve bankruptcy success.