You might not be comfortable disclosing all your assets for fear that they will be used to pay off creditors, but the court doesn’t look favorably on a debtor who hides them, even unintentionally. This includes transferring assets out of your name and into someone else’s. It might seem like a good idea to list Grandma as the owner on your house, but if this transfer of ownership occurs shortly before you file bankruptcy, your case is could be denied. Some transfers not only come at considerable financial risk, they can also be illegal. In addition, hiding your assets actually makes it more difficult to assess your situation and build your case. Bankruptcy is designed to protect you from losing everything so as you prepare to file, make a list of all your assets and discuss them with Mark. After reviewing your information, he will recommend which form of bankruptcy will provide you with the best results and allow you to keep the bulk of what you own.
If you want to avoid bankruptcy delays, fines, or dismissal, of your case, there are a few issues you need to be aware of before you file bankruptcy. In your effort to “do the right thing” or to avoid bankruptcy delays. You may be inclined to pay back loans to your friends and family before you file. Unfortunately this seemingly responsible act can backfire landing them in some trouble. In fact, they can be sued by the court in an attempt to collect the money you gave them in order to distribute it fairly to other creditors. Just as you are required to disclose all your assets, you must also list all your creditors including friends and family who loaned you money. If you are filing Chapter 7 in which your debts will be discharged, you can still pay them back when your case is closed. If you file Chapter 13, they can be incorporated into your repayment plan.
Although the above actions can cause setbacks, the worst thing you can do before you file bankruptcy is go on a spending spree or use your credit card as a cash advance. The court views purchasing big ticket items or maxing out your credit cards without intending to pay back the debt, as fraudulent behavior and you may face a criminal investigation to determine if the incident can be categorized as fraud. It is important to note that any purchase of $600 or more within 60 to 90 days of filing could be construed as such by the court. Keep in mind that bankruptcy is meant to provide you relief and the opportunity to start over. You can achieve success in the future if you are honest with yourself and the courts from the very beginning. Mark is in your corner. He builds your case based on the information you give him. The more he knows about your assets, income, debts, and creditors, the better equipped he is to help you resolve your debt. Keep these steps in mind to avoid delays or dismissal of your bankruptcy
If you’re dealing with financial hardship, contact the Law Office of Mark A. Bandy, P.C. today! He can determine which bankruptcy solution is right for you.
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