Filing for bankruptcy is not a decision that most Fort Lauderdale residents make lightly. Before you apply for Chapter 7 or Chapter 13, you must meet certain criteria. The financial choices you make before and during the bankruptcy process may also affect the outcome, and could even cause your bankruptcy application to be denied. As you might imagine, it is imperative to make the right decisions during the process, as well as to understand how bankruptcy works to avoid making a mistake.
CreditCards.com states that above all else, providing honest and accurate details when you fill out your bankruptcy forms will have the greatest impact on your case. If you conceal or leave out information on your income, assets and other financial details, your case could be denied. Even worse, you might find yourself facing criminal charges for fraud. Keeping up to date on your income tax returns is also important, as this information will be used when determining your bankruptcy eligibility.
We have stated in previous posts that carefully managing a line of credit may help you repair your credit after a bankruptcy. However, before filing for bankruptcy, it is unwise to take out new loans. In fact, accruing new debt just before applying for bankruptcy may be interpreted by a judge as an attempt to gain material possessions but avoid responsibility in paying for them. It is understood that you might not foresee the need to file for bankruptcy, and thus might not realize you should not apply for a new credit card. However, if you are experiencing financial difficulties, it can be considered a wise move to refrain from applying for credit until your challenges are resolved.
The bankruptcy process is complex. Therefore, this information should not be taken as legal advice.