WHAT NOT TO DO BEFORE BANKRUPTCY
Many who filed for bankruptcy while trying to cheat the system purposely or unknowingly gets into more problem than they realize.
It is very important to understand what you should avoid before filing for bankruptcy not only to ensure a trouble-free process but to avoid criminal charges punishable by up to $500,000 in fines and five years of jail time.
Below are 5 common mistakes you should avoid while filing for bankruptcy…….
1. FILING AT THE WRONG TIME
Don’t rush to file bankruptcy when facing debts. Carefully evaluate your current financial situation to see if you could possibly pay back the debts without losing basic life’s necessities could help keep your credit score, properties, and your ability to file bankruptcy again.
Another way round, a delay could cause even more serious damages. Hesitation to declare bankruptcy could lead to foreclosure, lawsuit, loss of assets to a lender, and delay in getting stable financially.
2. INACCURATE OR DISHONEST INFORMATION ABOUT ASSETS
Some persons may want to play smart by stating false claims about their assets or hide them entirely while filing the means test. This can only result in more problems because your bankruptcy trustee has access to your financial records so your action won’t go unnoticed.
Hiding your creditors or assets is a punishable offense and you could face up to $5000,000 in fines or five years of jail time.
Not sure of what information to provide, talk to a state-recognized attorney.
3. TRANSFERRING ASSETS TO FAMILY MEMBERS
You may be tempted to transfer your assets to a friend or family member with the hope of getting them back and not to lose them over to creditors after a chapter 7 bankruptcy.
Your action can be viewed as dishonest and could face possible penalties which may include depriving you of filing for bankruptcy.
If you own a car, it must be listed as an asset or if you still owe money, it must be listed as a liability. You must b able to provide all receipts of transactions for all properties sold to pay off debts before bankruptcy.
4. TAKING NEW DEBTS
It would be unwise to add up more debts when making a decision to file for bankruptcy. Taking up more debts shortly before bankruptcy could make future lenders believe that you can’t manage debts responsibly and make it hard to get a loan after bankruptcy.
5. DOING IT YOURSELF
Don’t ever try to file bankruptcy on your own. It’s like taking self medications. You need an attorney to tell you which chapter works best for you when to file and to guide you throughout the entire process.
Don’t make costly mistakes that could damage your credit score for life.
Let a state-recognized attorney help solve your bankruptcy issues before it becomes late.
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