Filing for bankruptcy is designed to give you a clean financial slate. It is supposed to shield you from the unrelenting pressure of unscrupulous creditors, giving you enough room to allow you to get to your feet. However, when not done right, filing for bankruptcy can end up being a stressful process. One of the things that can complicate this process is failing to disclose all the necessary information required by the law. The following are some of the ways through which full disclosure can help you to avoid most of the stress associated with the bankruptcy filing process.
Avoid the risks of prosecution
When filling your bankruptcy paperwork, you should make sure that you fill in all the information required by the forms. This includes disclosing all the assets that you own and the nature of the debts that you owe. This is because omitting material information can be met with criminal prosecution. This may call for you to spend more time and money defending yourself, something that will make the bankruptcy process more complicated than it should be.
Avoid extra fees
Filing for bankruptcy will improve your odds as far as financial freedom is concerned. However, these odds will be significantly reduced if you rack up a lot of fees on your way to a successful bankruptcy petition. Unfortunately, that is exactly what will happen if you fail to fully disclose your assets and liabilities as required by law.
While it is possible for the court to allow you to file additional paperwork in case of incomplete or erroneous filings, correcting these mistakes usually require paying additional fees and penalties. You also run the risk of having the discharge date being extended, something that will delay your journey to financial freedom. It may also mean having to pay more money in terms of attorney fees due to the increased workload.
Avoid partial discharge
One of the things that necessitate bankruptcy is the desire to gain reprieve from harassment by some creditors. However, while filing for bankruptcy usually initiates an automatic stay that prohibits the annoying calls and threats, forgetting to disclose a given debt might lead to it not being discharged. This may then leave you at the mercy of the creditor. There is also the fact that disclosure mistakes can lead to your application being rejected. And when this happens, the harassment may resume, something that may then subject you to unnecessary stress.
Making sure that you provide all the requested information is important as it helps to avoid penalties and delays. This is one of the reasons why it is important to have a bankruptcy attorney go through your paperwork before filing your bankruptcy application.
For answers to your questions about the bankruptcy process, talk a lawyer like those at Colleen Metroka Law.
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