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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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MISTAKES TO AVOID
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BANKRUPTCY Q & A
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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 $500.00 within 90 days of filing are
presumed to be nondischargeable and may be found to be due and
owing.
Cash advances of more than $750.00 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
within one year of filing bankruptcy.
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 two
years of the filing of the bankruptcy with the intent to hinder,
delay or defraud a creditor.
5. THE LINE OF CREDIT/SECOND 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.
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, imprisonment or all of the above. |
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