If you are thinking about filing for bankruptcy in the Philadelphia area, you probably have exhausted all other options to pay off your credit card debts. Bankruptcy can help you give you a fresh financial start. However, you should be mindful of what you do before and during the bankruptcy process to avoid complications with your case.
There are several things you must do before you file to ensure you receive the maximum benefits of its protection. The wrong mistakes could cause the courts deny you the right to file at that time or dismiss your case. Take some to review the following mistakes to avoid during bankruptcy.
1. Opening new accounts and maxing out old ones
You may feel tempted to max out your current credit cards and open new accounts because you believe the debts will be wiped out in bankruptcy. The courts will scrutinize your financial activities before and during bankruptcy to ensure you are not deceiving them or committing fraud. Regardless of what you plan to use your credit cards for, you would be better off putting them away where you will not use them.
2. Lying about your finances
You might not want to share all of the details regarding your finances with the courts, but you must do so. If you lie or omit important information, such as lottery winnings, inheritances, gifts and other types of funds, you risk having your case dismissed and other penalties.
There are two main types of bankruptcy you are probably interested in: Chapter 7 and Chapter 13. It is important for you to file the correct chapter to get the financial relief you seek and prevent further financial distress. Chapter 7 bankruptcy may seem like it is right for you to have your debts written off. But there is a strict means test that you must pass. If your situation does not qualify for Chapter 7, Chapter 13 might be more beneficial.
To better understand your bankruptcy options, you might want to speak to an attorney. He or she can offer guidance to help put an end to your financial challenges.