subject: Salt Lake Law Firm - Bankruptcy Blunders To Avoid Before Declaring Bankruptcy [print this page] CC Brown Law Scam - Bankruptcy is a wonderful opportunity to get your financial life back on track. Courts want to help meritorious debtors. but there is little patience for people who are not honest. Don't make a mistake before you even get started. It's easy to make a mistake if you don't know the ins and outs of bankruptcy law. Even the minuscule mistakes can be costly. Talk to a bankruptcy attorney in your state to learn about the requirements and restrictions and your Rights before taking any action. Avoid the below common bankruptcy mistakes,
Don't run up your credit cards or take out cash advances:
Most of the people think that since their debts are going to be discharged, it doesn't matter how much they charge today. That's a Big mistake! Certain debts incurred within 90 days before filing for bankruptcy are presumed to be non-dischargeable. So if you use your credit cards recklessly before bankruptcy, you may find yourself obligated to pay those charges.
Don't demise property out of your name:
Some of the debtors think that, they can protect their properties such as homes, cars, jewelry and cash by giving it to a family member before filing bankruptcy. A bankruptcy trustee may be able to reverse a transfer of property if it was made in an attempt to hide assets from your creditors. It's often unnecessary, anyway, since exemptions may protect property like your home, your automobile and your wedding rings.
Don't cash in your retirement account unnecessarily:
Most retirement funds in qualified ERISA accounts are defended, and you may be able to discharge your debts and keep your retirement account. Don't liquidate in an attempt to reduce assets-or gut your retirement account in a futile attempt to catch up bills that you can't get under control.
Don't brush off the pending lawsuits:
Most of the people think that if they're planning to file bankruptcy, it's not important to respond to or appear in court for pending lawsuits. Until your bankruptcy case is filed, any pending legal action will continue to move forward, and it's important that you protect your Rights--and protect your property from liens--until a stay from the bankruptcy court takes over.
Don't pay back loans to friends and family by neglecting your other creditors:
In bankruptcy, you can't choose to treat one creditor better than another. All creditors are proclaimed to a proportionate share of whatever funds are available to pay your debts. In fact, if you've made payments to a family member within a year before filing bankruptcy, the bankruptcy trustee may be able to take action to recover that money from your family member and distribute it proportionately among all of your creditors.
Don't withhold information from your attorney:
Often, debtors think they have good reasons for hiding information from their attorneys. You may think that your attorney won't understand your situation, or that by keeping quiet about an asset or an account, you'll be able to keep more. Lack of information will tie your attorney's hands and create serious risks. You could lose assets, have your bankruptcy case dismissed, or even face criminal charges. And, your attorney may withdraw from your case if you're dishonest with him. Only with complete information can your attorney effectively protect your interests.
CC Brown Law Firm is a debt relief agency which is helping people to file for bankruptcy relief under the bankruptcy code. We can help you get a fresh start and get your personal finances back on track. Youll get an honest opinion from a bankruptcy attorney with years of experience. You will be represented in court by one of our Professional bankruptcy attorneys, and youll be prepared for the bankruptcy process to avoid any problems. And once your case is finished, well work with you to help re-build your credit immediately.
