December 21st, 2011 by Reed Allmand 
You may think you’re ready to file for bankruptcy – but unless you have the aid of a bankruptcy lawyer by your side, you could end up making a crucial mistake that will ruin your finances for years.
Pointing out that bankruptcy is complicated is definitely an understatement. Between the paperwork, the complexity of the process and the sheer length of time it takes to discharge your debts (it can take six months to a year for the simplest cases), any little mistakes could end up with your bankruptcy case being forestalled or dismissed altogether.
With that in mind, let’s take a look at the bankruptcy mistakes that bite back:
- Not using a bankruptcy lawyer. Believe it or not, plenty of individuals think that they can go the bankruptcy process alone and skip using a bankruptcy lawyer altogether. But these are the same people who often discover that the process of declaring bankruptcy is much too complicated to go it alone. As previously mentioned, the sheer complexity of the process means that any little filing mistake – or error in reporting – can result in a dismissed case. Additionally, not having an attorney to advise you on difficult scenarios can often cause a great deal of anxiety and pressure for the claimant.
- Using bankruptcy filing software. In the same vein as forgoing the bankruptcy attorney, many individuals seem to think that they only need bankruptcy filing software to get the debt relief they need. While this may seem like a cost-effective way to efficiently file for bankruptcy, the same problems crop up. What happens when you have a question about the filing process? What happens when you made a mistake? What happens when the bankruptcy courts request paperwork you don’t know how to file? Bankruptcy filing software may seem like a good idea initially, but the truth is that it’s no better than going it alone.
- Running up masses of debt. You’ve started to file for bankruptcy – and suddenly you realize that you have a credit card that’s about to be eliminated when your debts are discharged. You decide to go on a little spending spree and use up your credit limit; after all, if the debts are going to be discharged anyways, how can it hurt? But bankruptcy courts don’t look too kindly on such actions; in fact, they’ll likely throw your petition out and charge you with fraud.
Don’t make the kind of bankruptcy mistakes that bite back – if you are considering filing you should contact a reputable bankruptcy attorney.
About Reed Allmand
Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."
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