Oklahoma Bankruptcy HelpSeven Common Chapter 7 Tulsa Bankruptcy Mistakes
When filing for a Chapter 7 Tulsa bankruptcy, you may believe that everything is in the hands of your selected Oklahoma bankruptcy attorney.
Although an experienced bankruptcy attorney will ensure that your bankruptcy is completed properly, there are a number of mistakes you can make prior to filing Chapter 7 Tulsa. Such errors could have adverse affects on your bankruptcy.
Delaying to file Chapter 7 Tulsa
The biggest mistake many people make is waiting to file a Chapter 7 Tulsa bankruptcy petition. Although bankruptcy may seem like the absolute last resort, this is only true if you are still able to make payments on time.
If, however, your wages are being garnished, judgments are being issued against you, and your car is at risk of repossession, you are waiting too long. Filing a Chapter 7 Tulsa bankruptcy petition really will provide you emotional and financial relief if your financial situation has become that serious.
Failing to list all of your creditors
Bankruptcy only affects the creditors of which the court has knowledge. If you fail to list every single one of your creditors, then that debt will not be discharged or reduced.
Even worse, that creditor will be able to continue to attempt collection from you using any means legally available to them. Therefore, it is critical that you list every single creditor, even if you are unsure of whether you should.
Making the wrong payments
Many people attempt to pay their creditors before giving up and declaring a Chapter 7 Tulsa bankruptcy.
Although doing so is not “wrong,” the court may order some payments returned if you paid your creditors out of order. This means that you paid your unsecured debts (credit cards) before your secured debts (i.e. home loan or auto loan.)
In the eyes of the court, secured debts must be paid before unsecured debts. For this reason, a court will consider whether you’ve paid any unsecured debt within the past 12 months and have it re-distributed to the secured debts.
Wrongfully transferring assets
If you have an asset that is non-exempt and you are worried about losing it, you may be inclined to shift those assets to another location or person while the bankruptcy is pending to prevent from losing it. However, doing so can seriously complicate your Chapter 7 Tulsa bankruptcy case.
If you do have non-exempt assets, you should alert your lawyer. She can help you transfer them in a manner that comports with the law, if necessary.
Modifying your mortgage
You cannot modify your mortgage while you have a bankruptcy pending. Therefore, if you attempt to do so, your application will likely be denied.
If you are in the process of modifying your mortgage, you should only file bankruptcy once you’ve completed the modification.
Losing your tax refund
If you receive a large tax refund in the middle of your bankruptcy proceedings, you may be required to turn it over to the bankruptcy trustee. Therefore, if you are expecting a large refund, you may want to hold off on filing bankruptcy until you’ve received it.
Hiring an inexperienced attorney
One of the biggest mistakes you can make is hiring an inexperienced attorney. Bankruptcy involves a substantial amount of financial knowledge, as well as legal knowledge.
Choosing an attorney who not well-versed in both increases the chances that something will be missed or that you will not be adequately represented.
Low-cost Financial Relief Analysis: Tulsa Bankruptcy Lawyer
To achieve your intended financial goals, contact a Tulsa bankruptcy attorney at the Freedom Financial Bankruptcy Lawyers of Tulsa as soon as possible. We can make sure you are taking the right steps towards a satisfactory Chapter 7 Tulsa bankruptcy result.
To receive your low-cost initial bankruptcy analysis, call the Freedom Financial Bankruptcy Lawyers of Tulsa today at (918) 786-9600.
