Chapter 13 offers more advantages than the other bankruptcy types. For example, it allows you to keep more assets, which makes it the ideal option if you don't want to lose your belongings. But to achieve success, you must follow the stipulated regulations, including accepting the responsibility of paying back your creditors. Failing to comply with these rules could make you lose the court's protection and risk losing your assets to your creditors. You can avoid such problems by taking the following steps when applying for chapter 13 bankruptcy.
Enlist the Help of a Lawyer
Bankruptcy application is regulated by strict regulations that you must comply with to sail through. Because of that, it's advisable to seek guidance from a legal practitioner proficient in this area. Your lawyer will help you create an acceptable application.
Ideally, your attorney will first evaluate the situation to determine whether chapter 13 is the right bankruptcy type for you. They will then help you gather the relevant information demonstrating why you need to declare your insolvency. Most importantly, they'll assist you in filling out the application documents and ensure that you provide all the relevant information.
Update Your Lawyer on Major Life Events
Your lawyer needs an update on the events and changes in your life that may impact your bankruptcy application. For instance, it's important to notify them when you get married or divorced, change your name, or relocate to a new location. You also need to update your legal advisor after losing your spouse or joint debtor and after a party presses charges against you. They will evaluate the situation and develop a strategy to prevent your financial situation from worsening. That includes getting court orders barring any party from taking legal action against you.
Seek the Court's Approval before Selling Property or Acquiring More Credit
Judges offer stiff penalties to any applicant who goes against the court's wishes. These offenses include selling any property, incurring additional debts, entering into leases, or excessive usage of your credit card without the court's approval. Therefore, you should desist from anything that might get you into trouble with the authorities. Notify your legal advisor when you need to sell your personal belongings or acquire more debt. They will advise you accordingly to safeguard you from unnecessary penalties.
What you do can make you enjoy the financial relief or get you into trouble with the authorities when applying for chapter 13 bankruptcy. So it would be best to take the above measures to make your application successful. Above all, work with a bankruptcy attorney to get the much-needed legal advice and evade costly errors.
For more information, contact a firm like the Law Offices of Dan Moulton.
