How To Ensure A Smooth Process When Filing For Bankruptcy

Posted on: 12 April 2022

Financial stress can take a toll on your life and prompt you to seek legal interventions to alleviate the pressure. For instance, a bankruptcy application can offer you much-needed relief from the nagging creditors giving you sleepless nights. 

Even so, you can easily get into more trouble if you go into the process blindly. For this reason, it's advisable to seek the legal assistance of an attorney since they are proficient in bankruptcy applications. This article shares some of the steps your bankruptcy attorney may suggest as you commence and proceed with the application. 

To Render the Application at the Right Time

Time is of great importance when it comes to bankruptcy applications. The right timing ensures that you get the right amount of money to rescue you from the distressing situation. Your lawyer can recommend a bankruptcy application in various scenarios. 

For instance, you should apply for bankruptcy as soon as a creditor files a claim against you. Doing this averts complications. Also, acting slackly might allow the creditor to acquire your property through a court order. Usually, a timely application enables you to get an order barring a creditor from taking legal action against you. 

To Provide Accurate Information

Providing inaccurate information in your application is a legal offense that might make you spend several months behind bars or pay a hefty fine. For example, some people fail to include all their assets when filing bankruptcy applications. If you fall into this temptation, you risk losing the application and getting penalized. 

For this reason, you mustn't leave out any of your assets when applying for insolvency. Working with a lawyer is essential in averting such a situation. They will ensure that you include accurate information in your application to increase your chance of succeeding. 

To Wait Longer If Expecting an Income Soon

If you expect a huge sum of money, filing for bankruptcy isn't the best option. That is because you will no longer be bankrupt after receiving this money. For instance, you could be expecting to get an inheritance, loan payment, or tax refund. In this case, your attorney will explore other options to calm your creditors down. They can negotiate with the creditors and ask for more time to repay the debts.

A successful bankruptcy application starts with adequate preparation. That's why consulting a bankruptcy attorney before starting the process is advisable. They will advise you to take the measures above and others that will make your application smooth and successful. 

For more information, contact a local law firm, like Southern California Law Advocates.