A Chapter 13 bankruptcy filing can be complex. With so much of your financial future riding on one legal case, it's important to avoid mistakes. Be aware of these three avoidable mistakes when you petition the court for relief.

Rushing

People often worry that they're not going to get their filing into the court soon enough. Especially if you're filing to hold off the foreclosure of a house or the repossession of a vehicle, this is understandable. However, going too quickly often leads to mistakes. If you don't have an immediate risk hanging over you, the smart move is to spend an extra week or two on the petition.

Lack of Counsel

Filing for bankruptcy without the benefit of a lawyer's advice is inviting trouble. A Chapter 13 bankruptcy attorney can help you understand the basics of the process. If you're not sure if you're eligible for Chapter 13, a lawyer can review your debts and finances and tell you whether they think you have a good case.

Similarly, a lawyer can help you file the initial paperwork. If the judge has questions about the Chapter 13 bankruptcy filing, an attorney can help you make sense of the questions and reply in writing.

Also, Chapter 13 creditors have the right to demand a hearing. They will have counsel, and their lawyers have the right to interview you under oath. You don't want to jump into that without a Chapter 13 bankruptcy attorney.

Insufficient Documentation

The strength of a typical legal argument tends to depend on what you can document. In a Chapter 13 bankruptcy filing, you need to prove that your financial circumstances are dire enough to justify a repayment schedule. At the same time, you want the court to see that your situation isn't so dire that the judge should reject the petition and encourage you to file Chapter 7.

You need to be able to document your current income. The last couple of years of your tax returns will be useful. Recent pay stubs are also valuable, especially if there has been a recent decline in your income. If you lost your job, you should be able to document the change and show your unemployment payments.

Identifying all of your creditors is also critical. If you fail to name a creditor in the case, that party can continue to pursue the full value of the outstanding debt even if the court issues a discharge. Likewise, they can continue collection and repossession actions.

Keep these Chapter 13 bankruptcy filing tips in mind when working with a local law firm.