More than 261,000 filings for bankruptcy were filed in the US during the first quarter of 2013 alone, according to Yahoo Finance.
Millions of people are still struggling with the aftermath of the economic recession and financial struggle of 2008, which is why studies have projected that this figure will remain consistent in the years to come as well.
If you find yourself in a situation where filing bankruptcy seems to the most feasible option left, there are several things that you should never do when going through the overall filing process.
Lie About Anything
Deciding to cut corners and create shortcuts by lying about your assets, income or anything else within the required paperwork and forms can quickly lead to your case being dismissed and your debts being banned from the filing process overall, according to BankRate.com.
Based on a thorough analysis of recent cases and confirmed reports of past bankruptcy filings, it is clear that the vast majority of people that file qualify and will get approved. Even if you are rejected, there are quite a few other options available that can be considered as alternative routes to take. For example, a team of attorneys from LegalZoom reviews all available options with their clients even before the bankruptcy paperwork has been filed in the first place.
Refuse to Organize Your Taxes
There are quite a few mandatory requirements that must be followed exactly as instructed when filing for any specific type of bankruptcy. One of these requirements is to make sure that you’ve organized all of the tax paperwork and forms filed in the previous year.
Keep in mind that these forms are imperative in order to keep your paperwork current within the bankruptcy court which is why you will not get very far into this process without having that paperwork handy.
For example, say that an attorney from LegalZoom reviews your entire case and recommends that you go ahead and file for bankruptcy. Doing so will allow you to finally have the chance to start over with a clean slate, so the last thing that you want is to ruin this opportunity by not having your tax paperwork in order, according to Business Insider.
Forget to Educate Yourself Beforehand
Keep in mind that the overall bankruptcy filing process is length, time-consuming and tedious. Whether you have been through this process several times or are considering the possibility of filing for the very first time, educating yourself on the entire process as much as possible is of the utmost importance. You need to make sure that you fully understand every single part of the process before you file.
Do as much as research as possible before making any final decisions, because your knowledge and insight in this regard will come in handy more than you might realize right now. If you need to have any legal assistance, using a service like LegalZoom Reviews can help you get a clear idea of what you will need to do and when.
Return to Your Old Spending Habits
Pay close attention to the path that led you to this point in the first place. Although you can recover from a bankruptcy over time, it is imperative for you to fully understand the course of action that was followed to get you to this point in your life.
The last thing that you should ever want to do is to allow history to repeat itself and lead you exactly where you are right now all over again. Getting approved for bankruptcy is always more difficult the second time around, which is why you need to drastically change your spending habits and overall financial management procedures to make sure that you never have to return to a bankruptcy court again.