Errors that a DIY bankruptcy filer will commonly make mistakes on:

• Exemptions may not be selected or applied to preserve assets
• Property may be omitted from the schedules
• Debtors forget to schedule intangibles like stock options
• Partnership interests; interest in pending probate estates; trust funds and lawsuits (filed or potential) are commonly omitted
• Tax refunds; or retirement funds may be forgotten or not included.

Creditors are erroneously omitted, either because DIY filers think that only a certain kind of creditor can be discharged, or omit a creditor because they want to repay the debt.

Debtors may not understand the seriousness about transferring assets to others before filing or deliberately not disclosing assets, on the grounds “no one will know”. 

These mistakes can lead to the loss of assets that could have been saved if an experienced bankruptcy lawyer was involved. At the very least, you may get less relief than was available by law.

Bankruptcy is indeed, an effective method to gain a financial fresh start. A second chance to a solid financial future. When you successfully file bankruptcy, the debts that you have collected will be relieved to a great degree, but filing without extensive knowledge of the legal system may cause undo stress and is not advised for most people.

The main benefits of bankruptcy are:

• Automatic Stay: The automatic stay in bankruptcy stops creditors from debt collection. Creditor’s harassing phone calls stop, threatening mail ceases, repossessions are stopped, mortgage foreclosures are stopped and law suits as well.
• Exemptions: By law, certain exemptions are allowed which means that you may keep personal property outside of creditor’s claims. Types of exempt property are clothing, family heirlooms, furnishings etc. These are just a few examples and are subject to certain monetary or value limits.

Although bankruptcy records are public, it is still fairly easy to keep your bankruptcy private. You probably know people who have filed bankruptcy, they just didn’t tell you. When you file bankruptcy, it is not embarrassing or demeaning. In fact, these tough economic times have made filing bankruptcy more prominent than ever.

Each state has different rules and regulations, so if you are filing bankruptcy in Michigan, please contact Chimko for a helping hand.