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CHAPTER 7 BANKRUPTCY
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CHAPTER 13 BANKRUPTCY
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WHICH CHAPTER IS FOR ME?
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TAX PROBLEMS
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MISTAKES TO AVOID
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BANKRUPTCY Q & A
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MYTHS ABOUT BANKRUPTCY
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DEBT NEGOTIATION
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OUR PERSONAL INJURY SITE
FREE CREDIT REPORT |
7 MISTAKES
TO AVOID
PRIOR TO FILING BANKRUPTCY
1. THE CREDIT
CARD RUN-UP MISTAKE:
Don’t use your
credit cards once you have made your decision to file bankruptcy.
Consumer debts incurred for luxury goods and services owed to a
single creditor in excess of $600.00 within 90 days of filing are
presumed to be nondischargeable and may be found to be due and
owing.
Cash advances of more than $875.00 within 70 days of filing are
presumed to be nondischargeable and may be found to be due and
owing.
Don’t jeopardize
your "fresh start" by running up your credit cards.
2. THE REPAY A FAMILY MEMBER MISTAKE:
With regard to repaying debts, you cannot treat your family member
any better than you would an ordinary creditor. In fact, a
bankruptcy trustee can reclaim any amount repaid to a family member
or business insider within two years prior to filing bankruptcy.
After your bankruptcy is over and discharged you are free to pay
back anyone you wish.
3. THE LIQUIDATE YOUR RETIREMENT ACCOUNT MISTAKE:
Retirement accounts are generally protected. You can eliminate your
debt and keep whatever you have in an ERISA qualified account, free
and clear. Many individuals drain their retirement accounts in a
futile attempt to pay down credit card debt.
4. THE TRANSFER PROPERTY OUT OF YOUR NAME MISTAKE:
A bankruptcy trustee can undo a transfer of property that previously
belonged to you. This can occur if the transfer was made within up
to 4 years of the filing of the bankruptcy if the transfer was to an
insider or was with the intent to hinder,
delay or defraud a creditor.
Don't put your
property and bankruptcy at risk by making major changes on your own.
Most property can be protected through bankruptcy. You will be
surprised. Equity in real estate is often protected especially
if you occupy the home. Additionally, most personal property
(such as cars, furniture, bank accounts and even jewelry) can be
protected with the proper use of bankruptcy exemptions.
Remember, most people filing for bankruptcy lose nothing but their
debt.
5. THE LINE OF CREDIT/2nd MORTGAGE TO PAY DEBT MISTAKE:
Don’t take a loan against your real estate in an effort to reduce
the equity. You can often file bankruptcy and not lose this valuable
asset. If you take out a second mortgage to pay credit card debt,
you may be putting your house at risk. In short, don't change
UNSECURED credit card debt (that could easily go away through
bankruptcy) into debt that is SECURED by a line of credit or
mortgage on your home.
6. THE FAILURE TO APPEAR AT COURT PROCEEDINGS MISTAKE:
If there’s a collection case pending against you in state or federal
court, don’t assume that you can avoid the court process simply
because you’ve decided to file bankruptcy. Until your bankruptcy
case is filed, a collection case continues.
7. THE FAILURE TO TELL YOUR ATTORNEY THE TRUTH, THE WHOLE TRUTH
AND NOTHING BUT THE TRUTH MISTAKE:
An attorney can only provide advice based upon information provided
by the client. Failure to notify your attorney about your assets can
lead to the loss of those assets, denial of your bankruptcy case,
fines and in extreme cases, imprisonment. Your attorney will
need to know about all of your debts, assets and income in order to
fully appraise you of the benefits, as well as any risks that might
be connected with your filing for bankruptcy. |
Common Bankruptcy Mistakes
619-574-0551 |
