Filing for bankruptcy is a process that does take some time and understanding on your behalf. While it has become a viable solution for many Milwaukee residents, one wrong move could ruin your chances to have financial burdens lifted. The best advice is to work with a bankruptcy lawyer in Milwaukee WI to avoid the pitfalls that could delay your application and approval process. Below are a few common mistakes that you should avoid doing while filing for bankruptcy.
Be Careful How Much Debt You Incur Before Filing
Once you’ve consulted with an attorney and have decided that filing bankruptcy is ideal for you, it is important that you pay attention to your debts. It is highly recommended that you stop utilizing your credit cards. Any large charges, cash advances, or balance transfers can leave you in a world of trouble. Credit card companies will monitor your transactions for suspicious activities. Therefore, charging a $1,000 expense right before filing your application could result in banking institutions objecting to your request, citing fraud.
Don’t Reaffirm What You Can’t Afford
When filing bankruptcy, if you have specific collateral that you would like to keep, such as your car or home, you will likely be required to sign a reaffirmation agreement. What this essentially says is that even though you have filed bankruptcy, you would like to retain the property and make payments. Once you reaffirm, you must make payments or the lien holder has the right to repossess the collateral and garnish your wages. If you can’t afford to keep that second car, it is best to turn it over and have the debt wiped out.
Don’t Miss Your Meeting of Creditors
Facing your financial struggles can most certainly be a hard pill to swallow. However, filing for bankruptcy can relieve those stresses. Once you file, there is a mandatory meeting of creditors that must take place. This is when your bankruptcy lawyer and creditors will sit down to go over the information on your application to ensure it is accurate. Failure to show up would mean that your bankruptcy application is denied.
These are just a few things to avoid when filing for bankruptcy. It is important to find a reliable bankruptcy lawyer in Milwaukee WI that can help you through the process. Once you have completed all of the necessary steps, you can begin living a more debt free life.
