Bankruptcy mistakes are made when people don’t take the severity of the process seriously, are unaware of the specific rules of the Chapter or the state, or ignore the little details.
While every case is different, the decision on whether to file a Chapter 7, 11, or 13 bankruptcy needs the guidance of professionals like Oklahoma City bankruptcy attorneys.
Notably, bankruptcy mistakes are costly because your case can be dismissed, and your creditors can continue calling you and even file a lawsuit against you. Seeking legal counsel from the outset can help you get the process right and prevent debt collectors from seizing their property.
Will My Case Be Dismissed If I File a Partial Petition?
If you are worried about a possible foreclosure of your home, you will probably be doing everything in a rush in an attempt to get the process started in the shortest time possible. While the court accepts a brief petition, you will be required to do more afterward.
A complete petition detailing the schedules, the creditors’ list, and other important information are necessary to discharge a bankruptcy case. The initial abbreviated petition can be dismissed if you fail to follow it up with the complete version within 14 days.
Are There Implications for Not Attending the First Meeting with Creditors and Trustees?
The first meeting is crucial because the trustee gets an opportunity to ask you questions regarding the status of your finances and the bankruptcy petition. Besides, this is the meeting where you verify your residency and identity, and you’re sworn in.
But if it becomes impossible to attend this meeting due to an unavoidable circumstance, it is wise to reschedule it beforehand. The trustee can dismiss the bankruptcy case if you neither attend nor make efforts to cancel and reschedule the 341 meeting. So, if you are caught up in an emergency, an Oklahoma City bankruptcy attorney can help you contact the trustee.
Is a Debtor Education Class That Necessary?
A debtor filing Chapter 7 bankruptcy is obliged to take up the debtor education class following the 341 meeting. Notably, the case has to be completed, and the certificate filed within a specific period because a typical Chapter 7 bankruptcy cannot be discharged without it.
Your bankruptcy case can be closed if you fail to take up the class or delay finalizing and getting the certificate. It doesn’t matter how well the case has been progressing; the certificate is key to its finalization. But if you wish to reopen the case afterward, you will be required to pay new filing fees.
Must I Complete the Means Test When Filing Chapter 13 Bankruptcy?
Being in the army reserves, being a disabled veteran, or filing for business bankruptcy; does not require you to complete a means test for Chapter 13 bankruptcy. The means test usually requires applicants to fill out information like the size of their households, deductions, and incomes, which may not apply in the exempted groups.
So, don’t make the mistake of completing unnecessary forms when you don’t need to. A knowledgeable bankruptcy lawyer in Oklahoma can guide you on the specific requirements of a petition, based on the uniqueness of your case.
Are there Consequences for Overspending on a Credit Card Before Filing?
Running up your debts because you won’t have to repay them when you file Chapter 7 bankruptcy may be a bad idea. The cash advances and purchases you make shortly before filing will be scrutinized to determine whether you acted fraudulently. The bankruptcy trustee will look out for:
- Cash advance worth more than $950 obtained 70 days or less before filing bankruptcy
- Luxury services or goods bought 90 days or less before filing, costing $675 or more. Anything unnecessary is treated as a luxury.
In case you already spent your credit card in this manner, you can discuss it with a Chapter 7 bankruptcy attorney near you before filing.
What if I Conceal or Transfer Assets to Retain More After Bankruptcy?
The temptation to hide a rainy day fund or property is common among people caught up in debt situations – but it is wise not to do it. There is no point in doing it because the court can transfer back assets transferred to friends or family before filing for bankruptcy.
Failure to be upfront about all your assets is a violation of the law, and you can be charged with perjury. The consequences include hefty fines or jail terms – and you don’t need imprisonment or another financial obligation when you’re bankrupt. So open up to the bankruptcy lawyer about any mistakes you may have made in advance.
Should I Repay Some Debts Before Filing Bankruptcy?
Filing for bankruptcy means that you are unable to repay because the debts exceed your ability to pay off. Therefore, paying some debts can weaken your case by providing clear-cut evidence that you probably have the means to make repayments.
What’s more, it can make you a perpetrator of preferential payments, yet fair treatment for all creditors is a critical bankruptcy principle. The court gives your trustee the power to reverse any payments you may have made, and they can redistribute the funds across the creditors equally.
If you owe a family member, they may not be prioritized in the repayment because in most cases, you only have an ethical and familial obligation towards them – and not a legal obligation.
Legal Experts Helping You Stay Away From Costly Mistakes
Bankruptcy law is quite complicated – but unlike the average consumer, a skilled Oklahoma bankruptcy attorney possesses the experience, knowledge, and insights required. Whether you are struggling with a business or a personal debt, the right legal assistance can salvage your stressful situation.
If you are dying to regain control over your finances, you don’t have to struggle with the legal jargon and the complicated process. Mistakes are common when you go into it alone, and a rejected petition isn’t fun. It is simpler and less costly to speak to a legal expert.