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Millions of Americans struggling to pay off credit cards and medical bills may be able to benefit from discharging debt during bankruptcy. For those with unsecured loans, the best course of action may be a Chapter 7 filing. While potential filers should consult a local attorney before filing, the following are three key mistakes to avoid when filing for Chapter 7:

Forgetting the Statement of Intention
Bankruptcy is a bureaucratic process administered by the federal government, which means that every debtor hoping for a discharge must file a whole host of paperwork. One such required document is a Statement of Intention that lists any and all debts secured by pieces of property. This may not be applicable to your Chapter 7 case, but you still have to submit it to the court, or else the clerk may decide that your application is incomplete.

Lying On Your Application
Do not knowingly omit any important financial information on your bankruptcy documents. If the trustee or judge finds out about any lies, he or she may stop the Chapter 7 proceeding and maybe even refer you for criminal prosecution in state or federal court. It is essential to be as honest as possible when disclosing your debts, assets, and liabilities to the judge.

Not Submitting Documents to the Trustee
Another important part of a Chapter 7 filing involves meeting with your court-appointed trustee do assess the state of your finances. This individual is a bankruptcy professional, but he or she may need additional information about your income and expenses. Don’t make the mistake of waiting until the last minute to provide documents to the trustee. The quicker you turn in your paperwork, the better.

Are you a Schaumburg-area resident facing creditor phone calls and letters from collection agencies? If you hold unsecured debt, the law office of Cutler & Associates may be able to help you file for Chapter 7.