In roughly three decades, bankruptcy filing in the United States have jumped from a little over a hundred thousand to a staggering 2 million filings in recent years. It is now estimated that 1 in out of 70 American households have fallen for bankruptcy and this is irregardless of age, race, educational attainment, employment and income. Financial experts attributes three main culprits to this growing trend and they are divided into sudden medical bills, unemployment and credit card bankruptcy.
In addition, bankruptcy should be seen as a last resort when all other means have failed and as this harsh reality becomes even more prevalent, the US federal bankruptcy system is gearing up to implement regulations to protect the interest of those who give out the loans and those who cannot afford to pay them. Lawyers.com explains that our current system works to push for an organized system of discharging debts for debtors who are completely incapacitated to pay them on their own while at the same safeguarding the work of the creditors against fraudulent individuals looking to escape from their financial obligations.
To ensure that your filing for bankruptcy won’t add on to your current dilemma, we have put together the most common mistakes that you should avoid in making your bankruptcy claims.
Absence of an attorney – a bankruptcy law is comprised of a number of regulations and exemptions that are often too complex for an average mind to comprehend and so it is of utmost importance that you hire a lawyer to assist you with this process. A lawyer would guarantee the protection of your rights and at the same see to it that all the benefits you deserve are justly given.
Undermining its consequences – once you have filed for bankruptcy, it can pose certain red flags not just on your credit history but on your career options as well. A job opportunity that has to do with money may become difficult for you to get into as a result of your previous bankruptcy claim.
Debt accumulation – another mistake most debtors make is that of running their loans and credit card debts to its limits once they have realized that they no longer have the capacity to pay. Some individuals do this intentionally and when this is proven in the bankruptcy court, your claim for discharge due to bankruptcy may easily be dismissed and you are left to face paying for these debts on your own.