Bankruptcy Mistake #1 - Failing to work with a qualified bankruptcy attorney. Bankruptcy is not a D.I.Y. project. If you make a mistake in trying to file your own bankruptcy you don't get a "do-over" and you want be joking about it with your friends afterwards. Bankruptcy law is complex and creditors have been known to work the system to their advantage, especially when they realize that a debtor is out here all alone.
Bankruptcy Mistake #2 - Waiting until the last minute to file bankruptcy. We know that waiting until the last minute to file bankruptcy is common; but it is a huge mistake and can increase the chances of errors in your filing. It can increase the chance that a creditor will be able to seize assets before you can get the protection of bankruptcy's automatic stay.
Bankruptcy Mistake # 3 - Waiting until right after a move to another state to file for bankruptcy. Bankruptcy law states that a debtor must live in a state for at least 2 years before you can use that state's bankruptcy exemptions. If you're planning own moving to another state you may want to file bankruptcy before you move.
Bankruptcy Mistake #4 - Failing to use all of your exemptions or inaccurately estimating the value of your assets that are covered by bankruptcy exemptions. Bankruptcy trustees will not inform a debtor of their bankruptcy exemptions, that's why it is so important to work with an experienced bankruptcy attorney who can help you maximize your exemptions so that you can protect your assets from creditors.
Bankruptcy Mistake #5 - Failing to take the credit counseling course required by bankruptcy law. If a debtor fails to take the credit counseling course, their bankruptcy case may be dismissed.