Thursday, February 23, 2012

Preparing for Bankruptcy - February 23, 2012

 People file bankruptcy to find relief from a situation where finances have spiraled out of control. They may seek to discharge all the debt, through a chapter 7; or reorganize the debt and pay a more reasonable per month payment through a chapter 13. (Income variables apply when determining qualification) If you are looking to file a Bankruptcy, there are a few things you want to watch out for in preparation of the act of filing.

1) Payments made to creditors or on a personal loan will be scrutinized during this process if the payment made was over $600 and within 90 days of filing the bankruptcy. Try and stay away from these types of transactions prior to filing.
2) Stop using your credit cards if you are considering bankruptcy. Use of cards just before filing will also be scrutinized and possibly even viewed as fraud. Make sure that you discuss any recent transactions along with your intentions with your attorney.
3) Transferring or selling personal property just before filing may cause unnecessary complications in your case. In most cases "exemptions" can be used to protect any property you have from becoming property of the bankruptcy estate. If the Trustee of your case sees you have transferred recently or sold something hastily, they may get it back and then because we didn't protect it by exempting it, it will become property of the bankruptcy estate.

Bankruptcy can be confusing for people who know little about the bankruptcy process (most people fall under this category), it is important to consult a bankruptcy attorney about your situation before taking matters into your own hands, these items are listed as precautions and not legal advice.

If you have any questions about Bankruptcy please contact our Fresno Bankruptcy Attorneys at The Law Office of Timothy C. Springer for more information.
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