Many have experienced some financial turmoil at some point in their life. With the substantial price tag on college educations, houses, and the tempting glamour of new technology, it is a common occurrence for the majority of the population to be in debt. In some cases this results in bankruptcy. If you ever find yourself filing for Chapter 7 bankruptcy, follow these tips to avoid the most common mistakes.
Be truthful, especially with your attorney. If trying to borrow money to make up for other debts, make sure your creditor is aware of your financial history. Being completely honest can eliminate the chance of later being accused of fraud. Not only that, but let your lawyer know all of the details of your situation so they can better help you through this difficult time.
Don’t Wait Until the Last Minute
It is tempting to procrastinate; however, in this situation you can prevent foreclosure, bounced checks, and repossession by filing your case sooner rather than later. Because you want to be able to file a bankruptcy petition, be as responsible as you can when it comes to the filing process. The way you handle your case filing affects how competent and fair your bankruptcy outcome will be.
Don’t Blow Your Credit Before Filing for Bankruptcy
Try to avoid cash advances and account transfers before you file for bankruptcy. To be safe, do not use your credit card for at least 90 days before filing. Though that new TV looks nice, don’t buy it. Be smart with your money, because the goal is to get a fresh start and recover. When filing, your creditor will look at your credit history and you could end up owing money to your creditor even after you are no longer in a Chapter 7 bankruptcy. Make sure your attorney knows your credit history and discuss any spending questions you have.
Pay Your Taxes
It is always a good idea to pay taxes; in fact, it’s the law. If you own a business, always pay your payroll taxes. The IRS will hold people not paying payroll taxes personally liable for withholding employee taxes. Penalty charges will be applied, and those charges don’t go away with a Chapter 7 bankruptcy.
Don’t Forget to Include All of Your Income
Even include the 200 dollars you made with that freelance job. Every dollar you make working needs to be accounted for. All jobs, even small part-time jobs, count. Not only that, but in order to claim your children as dependents, it is important to include all income that your son or daughter makes, even if they have a minimum wage, part-time job. When people or businesses are bankrupt, they often give their money to family and friends so it does not need to be accounted for; avoid this and account for all of your current money.
Bankruptcy can be hard and messy. Thankfully, April Randle has the experience and knowledge to help sort things out. If you or someone you know is facing bankruptcy in the Cleveland, TN, area, then be sure to contact April Randle today to help you with your case.