Finding a way to resolve financial difficulties can help relieve the stress that most Texas residents feel under these circumstances. For many, filing for Chapter 7 bankruptcy is the right debt relief option, and they expect to walk away with a fresh financial start and fewer debts. However, if not careful, they could jeopardize receiving the discharge they need.
One mistake that some people make is failing to thoroughly review their documents prior to filing them. Incorrect or missing information could result in a dismissal of the case instead of a discharge. Another important step that could easily be missed is failing to take the debtor education course required under the U.S. Bankruptcy Code.
Texas residents also need to know that they cannot max out their credit cards prior to filing, nor should they attempt to hide assets. Trustees look for these types of actions and, when discovered, will probably recommend to the court that the case be dismissed. Moreover, hiding assets could result in criminal charges since the paperwork is signed under penalty of perjury. It is also vital to attend the meeting of creditors. During this meeting, the trustee and creditors have the opportunity to ask questions, object to certain aspects of your petition and otherwise verify the information you gave in your petition.
Another mistake many people make is not giving full disclosure to their attorney. A Chapter 7 bankruptcy attorney cannot do his or her job correctly without all of the information needed in order to do so. Filing for bankruptcy can provide those in financial distress with the ability to move forward without the burden of certain debts, but failing to follow these and other rules could jeopardize the receipt of a discharge.