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A voluntary petition for protection under Chapter 7 or Chapter 13 of the Bankruptcy Code is a like your personal income tax return: even a minor mistake can have serious consequences.  Here is a list we have compiled of the most common bankruptcy mishaps.

5.         Incomplete information

When the question says “all” or “any”, that really means “all” or “any”.  Even seemingly minor omissions can be a red flag to the trustee.

4.         Filing Too Soon

Some consumers get a few late notices on their credit cards, and they hit the panic button.  Remember that a premature bankruptcy filing can cripple or even kill your ability to file bankruptcy at a future time, when your real financial crisis begins.

3.         The Do-It-Yourself Bankruptcy

Many times doing it yourself is a good way to save money.  But there is a big difference between an oil change and a voluntary petition for relief under the Bankruptcy Code.  Be wary of the “non-attorney petition preparer”, who can fill out forms but offer absolutely no advice.    The self-filed bankruptcy is even more dangerous.  Swallow your pride and hire a lawyer.

2.         Inaccurate Information

Many taxpayers tend to take a very liberal view of their income and deductions.  “It looks like I may be eligible for this deduction, so I’ll claim it.”   This attitude is misplaced in bankruptcy court; the trustee carefully reviews every petition and will not hesitate to take action against fraudulent claims.

1.          Filing Too Late

When we are rushed we tend to make mistakes.  Don’t wait until the day before the foreclosure sale to hire a lawyer.  Call the law office of Henley and Henley today for your free consultation.