PREPARING YOUR SELF TO FILE FOR BANKRUPTCY
Do you have problems paying your debts? Are you threatened with massive credit card debt, unpaid medical bills, garnishment, foreclosure, or repossession? If so, you may want to consider bankruptcy as a way to deal with these problems. Here are some steps you should take if you a considering filing for bankruptcy.
Do’s
1. Continue to make payments on secured property you intend to keep such as a mortgage on a home and a car loan on a vehicle.
2. Make a list of your monthly expenses. So that you can provide this information to your Bankruptcy Attorney.
3. Find out the current value of your property. Do this for all your property, included inherited property. Pull together tax records showing the values for your assets. Keep in mind all your mind all property in your name must be listed on the bankruptcy petition.
4. Complete a credit counseling course within 180 days or less of filing.
5. Do obtain a copy of your credit report and list some unpaid bills that maybe missing from your report so that you can review this information with your Attorney.
6. Do file your tax returns. You are required to disclose the last two (2) years of tax returns to the Bankruptcy Trustee.
7. Do create a budget and trim expenses.
8. Find a good Bankruptcy Attorney and Do be sure to provide the name of your Attorney, website, and address and phone number to any friends or family members facing the same issues. A referral from a happy client is the best compliment a competent Bankruptcy Attorney can get!!
Don’ts
1. Do not borrow from your 401k to pay bills, because you will incur non-dischargeable tax debt. Also most retirement accounts are exempt from seizure in bankruptcy.
2. Do not transfer or sell property within two (2) years of filing to family members or for less than the fair market value. This will be viewed as a fraudulent transfer and could cause your case to be dismissed.
3. Do not create a living trust. This smells of fraud, because you are placing all of your assets in a trust for protection from creditors. Keep in mind that a Bankruptcy Trustee can search your name and social for unlisted assets. This will certainly have your bankruptcy dismissed.
4. Do not borrow large amounts of money from family members within six ( 6 ) months of filing. You bank statements are reviewed by the trustee once you file and he looks back up to six (6 ) months prior to filing.
5. Don’t take cash advances from credit cards within ninety (90) days of filing from bankruptcy. These advances are non-dischargeable and you will be stuck paying for it after your discharge.
6. Don’t use credit cards to pay tax debt. This will create a non-dischargeable debt. Consult with your lawyer about tax issues and debts, because some tax debt can be discharged in a Chapter 7 bankruptcy.
7. Don’t take out a consolidation loan. Filing for Chapter 13 bankruptcy is a more sound way of paying off your debt
8. Don’t avoid complaints and summons (lawsuits) filed by creditors in the past couple of years. Provide this information to your Attorney. The Attorney maybe able to have the lien or judgment voided in the bankruptcy.
If you would like to discuss what steps you should be taking to become debt free and your Bankruptcy options call Maxwell Law Firm, PLLC at 704-461-1883 or click here
In the California area contact the Law Offices of Chirnese L. Liverpool at 818-714-2200.
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