When you make the decision to file for bankruptcy you may be tempted to exaggerate your situation. Here are some common mistakes people make that bankruptcy attorneys Colorado uses know can work against your claim:
1. Assets and Income: Be certain you list all of your assets and income. Lying may be tempting to make it look like you have nothing, but you will get caught in the lie and ruin your odds of qualifying. Anything you own and income you make must be noted. And for those claiming a dependant child who has a job: you have to list their part time income. You have to list everything.
2. Cars and Car Loans: Many people forget their cars are considered an asset. You must list your cars and you must inform your car lenders you are filing for bankruptcy. Do not consider signing over the title of your car to a dependant child, even if they are the ones using the car. This will actually make your chances of losing the car even higher.
3. List all Credit Cards: It may be tempting to leave out a credit card as you are worried you will have nothing to fall back on for money. Again, lying is not in your best interest as your credit card payments all go through one place for payment. You will get caught out so you might as well fess up from the start.
4. Transferring Assets: An even bigger temptation will be to transfer assets to another person. This is actually against the law when filing for bankruptcy. Honesty is the best policy. Filing for bankruptcy is for people who have no choice and cannot ever imagine paying their debt. It is not for people who have assets and want to get out of paying their debt.
5. Family Debt: You will naturally be more concerned about debt you may have to family members and try to pay them back during your filing. This is not a good idea. Doing so can actually jeopardize your qualifying.
The bankruptcy attorneys Colorado uses know that any of the above can negatively affect your chances when filing for bankruptcy. Running up your credit cards, gambling and failing to mention law suits will also work against you.
