Reaching the decision to file for bankruptcy is often the hardest part of the process. However, California residents should know that there is still plenty of work that needs to be done once that decision has been made. It is imperative that individuals and families avoid taking action that could have a negative impact on their personal bankruptcy case, up to and including having the entire action thrown out of court.
Bankruptcy is a powerful tool for the elimination or restructuring of debt. The courts that handle these cases want to assist debtors in moving on to future financial stability. However, those courts must also act in a way that is fair and balanced toward the creditors involved. That means that the actions of the individual filing for bankruptcy can be placed under scrutiny.
One of the worst moves that anyone can take during the course of a bankruptcy case is to make choices that flaunt wealth. The act of filing for personal bankruptcy is an admission that there is a high degree of financial strain at play. Promoting oneself as being wealthy during that process can send a mixed message to the bankruptcy judge, as well as to creditors. Better to maintain a low profile while the case is ongoing and place one's efforts toward rebuilding credit and wealth for the future.
Just because a personal bankruptcy case has been filed, that does not guarantee that it will be processed. Many cases are dismissed for various reasons, often based on procedural mistakes. However, certain cases are tossed based on the court's belief that the debtor acted to abuse the bankruptcy system. That can leave a California resident in worse financial shape than when the bankruptcy was filed, and is an outcome that should be avoided.
Source: business2community.com, "How To Avoid Messing Up Your Bankruptcy Read more at http://www.business2community.com/brandviews/avvo/avoid-messing-bankruptcy-01594841#roWY2ZIpjGo4u24w.99
Read more at http://www.business2community.com/brandviews/avvo/avoid-messing-bankruptcy-01594841#roWY2ZIpjGo4u24w.99", Brette Sember, July 12, 2016