Bankruptcy can be a wonderful option to get rid of those debts that you cannot pay back. However, this can only happen if you file for bankruptcy properly and have your case approved. There are some common reasons that bankruptcy procedures are delayed, which you'll want to avoid in order to speed up the process.
You're Missing Old Tax Returns
One part of filing for bankruptcy is looking at your financial past. This is done by looking at your income over the past few years and seeing how it has changed. You'll need to have your old tax returns on hand in order to look at previous year's income. Delays can also happen if you haven't filed your previous year's tax returns. If you have been delaying filing your tax returns due to your financial situation, know that you need to have those tax returns completed before you can move forward with bankruptcy.
You Recently Sold or Gave Away Assets
Another issue that can cause complications is if you recently sold or gave away assets. While this sometimes happens due to the need to sell a house, it also happens because people want to hide assets from the bankruptcy filing. For instance, if they do not want to lose their car to pay off their debts, they may legally give it to somebody else so that it is not technically owned anymore. The problem with this is that the bankruptcy courts know of the technique, and it is legally viewed as fraud.
Not being honest about asset transactions will cause your entire case to be dismissed, or you'll need to pay back the money you received to your creditors.
You're Expecting to Receive Money or Assets
There are many reasons why you can expect to receive money or assets. This often happens if someone is expecting an inheritance and if the estate is not finished with probate, or if you have a pending lawsuit that you expect to win. The outcome of these events can definitely impact your financial status, which could very easily cause you to not qualify for bankruptcy anymore.
Since you do not know what you will receive until the event actually happens, it is best to wait until after you receive any assets or compensation to complete your filing. If not, then you'll run into complications that will only delay your bankruptcy proceeding or cause it to be dismissed. Work with a lawyer from a firm like Downard & Associates to make sure you go through this process correctly.
