Chapter 13 Bankruptcy Law Firm Oklahoma City
If you are thinking about filing for Chapter 13 bankruptcy, you may want to consult an Oklahoma City Chapter 13 bankruptcy law firm, like Marty Martin Bankruptcy Law. Chapter 13 bankruptcy allows you to restructure your debts and keep your assets. It can help you get out of debt and have a financial fresh start. Do not make these common mistakes when you file.
Common Bankruptcy Filing Mistakes
Paying Back Family Members or Friends
If you were struggling financially, you may have borrowed money from family members or friends. It is understandable that you may feel obligated to pay them back as soon as possible. However, if you are filing for Chapter 13 bankruptcy, you can’t give them priority over your creditors. If the court finds out that you paid back family members or friends before paying your other creditors, they can take that money back and redistribute it fairly.
Not Making a Realistic Budget
When you file for Chapter 13 bankruptcy, you will still have to pay off some of your debts. Therefore, you may need to make some cuts in your budget to be able to afford them. Sit down and take a close look at your budget. Determine what you can realistically cut out, such as streaming services or restaurant outings. Although it might be difficult to live on a tighter budget at first, it will be well worth it.
Not Hiring a Lawyer
It is in your best interest to hire a lawyer from an Oklahoma City Chapter 13 bankruptcy law firm. Chapter 13 bankruptcy cases can be quite complex, so you want someone knowledgeable and experienced on your side. A lawyer can guide you through the entire process and prevent you from making costly errors.
Neglecting to Finish Credit Counseling
In order to get your Chapter 13 bankruptcy case approved, you have to successfully complete credit counseling. These courses are supposed to teach you how to budget better so that you don’t end up in the same situation again. Therefore, you should make sure you complete your credit counseling by deadline.
Leaving Out Documents
Filing for Chapter 13 bankruptcy requires you to submit many documents, including your tax returns, bank statements, pay stubs and paperwork that states all of your debts. If you leave out any of the required documents, your bankruptcy case could get dismissed.
Creating More Debt
Once you have filed for Chapter 13 bankruptcy, the last thing you want to do is run up more debt. The court will definitely frown on that. Any debts you incur within 90 files of filing for bankruptcy will not be discharged.
Being Late on Payments
After you have declared bankruptcy, make sure that you keep up with your payments. You have a clean financial slate right now. Do not jeopardize it by being late on your bills.
Schedule a Consultation Today!
If you need assistance with your Chapter 13 bankruptcy case, you should schedule a consultation with a Oklahoma City Chapter 13 bankruptcy law firm, like Marty Martin Bankruptcy Law.