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Be transparent and provide all the information relevant to your case (even if you were not asked)
In this regard, it is important to understand that a bankruptcy obligator must provide all the information that may be relevant in his case, and if it is discovered at some point in the proceeding that information was not provided – the proceeding may be canceled. This also includes assets, those that you own today or that you had in the past and transferred to others, assets that you inherited, withdrawal from an estate, legal proceedings against you or those that you manage, and more.
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Submit full monthly reports backed by references
Invest time and thought in filling out the reports and make sure they reflect your true financial situation. Submitting financial statements is one of the main and important conditions in the procedure. Through these reports, the official* and the court can get an impression of the debtor’s financial situation and determine the fate of the proceeding. Failure to prepare these reports may lead to an increase in the payment order and sometimes even to the cancellation of the procedure.
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Pay monthly payments as usual and not in batches
When a debtor pays in batches, the impression is created that he is able to pay a higher payment order than the one awarded to him, when this is not always true. Therefore, be sure to pay month by month.
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Even if you haven’t paid the monthly payment, don’t skip filing financial statements
Filing financial statements is one of the cornerstones of the bankruptcy process and constitutes a material condition of the proceeding. Therefore, even if in a certain month you found it difficult to pay the monthly payment, do not give up on submitting reports.
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If you believe that the monthly payment imposed is high and does not match your financial abilities, contact the position holder and ask for a reduction. Before applying, make sure that you submit full financial statements so that the position holder can review your application
In order not to attend a hearing on your application when your behavior is accompanied by omissions related to non-payment stemming from financial difficulty, make sure to contact the official or the court on this matter as soon as possible.
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Keep the position holder informed of any changes in your circumstances
You had another child, moved, were arrested or fell ill, God forbid, an indictment was filed against you or any change that occurred in your life circumstances – inform the official. Beyond the fact that a change in circumstances may affect your financial situation and consequently the manner in which the process is terminated, if you do not report a change in circumstances, the claim that you are withholding information may be heard against you.
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Do not attempt to conduct business through third parties (mother, father, brother, sister, friend, etc.)
In some cases, the court approves the obligation to act through a licensed dealer. Hiding behind others, therefore, beyond the fact that it is improper, may lead to the procedure being canceled as a result of its abuse. If you are an independent practitioner whose continuation may benefit creditors, contact the functionary and consult with him on the matter.
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Even if you are represented by a lawyer, make sure to fill out the reports yourself (with the assistance of the lawyer) and make sure that the reports have been forwarded to the official
The financial statements directly affect the recommendations of the official and the court. Take responsibility in this matter and ensure that they are fulfilled with maximum transparency.
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Don’t rely on others to make the payment for you
Remember that this is your life and your ability to turn over a new leaf If you do not comply with the conditions of the procedure (even if someone else said they would do it for you), the procedure may be canceled.
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Remember that you have reached bankruptcy proceedings as a result of financial misconduct and do not repeat your actions
In this regard, it is important to remember that you are not allowed to take loans from any parties and not create new debts (and in this regard, electricity, municipal taxes, etc. debts are also considered new debts).
The above was written from the point of view of a special manager, who has accompanied hundreds of bankruptcy cases in recent years and out of a desire to help debtors conduct themselves properly in the process and end it by getting rid of their debts.
*The position holder is the person appointed by a court for the purpose of conducting the bankruptcy proceeding. At the first stage, upon issuance of a receivership order, the holder of the position is called a special manager, and after the declaration of bankruptcy, the appointment becomes a trustee.
