3 Mistakes To Avoid When Filing For Chapter 7 Bankruptcy

Posted on: 10 November 2015


Many people end up turning to bankruptcy due to something that happened in their life that they couldn't control. Whether it be that you lost your job or ended up with a tremendous amount of medical debt, filing for Chapter 7 bankruptcy is a great way to eliminate your unsecured debts and start fresh. However, there are certain rules you have to follow to make sure you follow to stay within the guidelines of the court. Whatever you do, don't make one of the mistakes below in your bankruptcy case.

Not going through the counseling courses.

When filing for bankruptcy, you will be responsible for taking a couple of counseling classes. One class is taken before going to the 341 meeting. the other class is taken before your case is discharged. It is important that you take your counseling classes seriously. Without completing them, you aren't going to get your discharge. Classes can be taken online or over the phone to make it more convenient for you. They are an invaluable resource for helping you take control of your debts and making sure you get your credit back on track.

Paying debts off before you file your case.

While you might not think it is a big deal to pay certain debts off before filing your case, that isn't the truth. You cannot choose certain debts to pay off and certain ones to throw into the bankruptcy case. If you do end up paying off a bunch of debts before you file your case, the bankruptcy court can go to that creditor and ask for the money back to go toward other debts that are more of a priority. Not only will this leave you with some angry individuals, but it will cost you precious money that you could have kept in your pocket.

Ignoring the 341 meeting.

Before your debts can be discharged, you have to attend a 341 meeting. This meeting gives creditors the opportunity to dispute any debts that you owe them. It also gives you the chance to reaffirm debts with certain creditors that you want to continue paying. This meeting is crucial and you have to go. If you don't go, the court has the option of throwing your case out and making you start over or rescheduling the hearing. Either way, you are postponing your discharge.

By not making one of the mistakes above, you can get through your case with ease and move on to a debt-free life. Contact a legal professional like William C Fithian III to learn more.