Thursday, March 7, 2013

Three Bankruptcy Mistakes to Avoid.

Thinking About Bankruptcy? Here Are Three Mistakes To Avoid.
King and King Bankruptcy Attorneys, 7/1/13

One of the largest mistakes that people make is not considering filing for bankruptcy. Bankruptcy is an extremely helpful tool that can change your life for the better. At King & King, we want you to be prepared before, during, and after your bankruptcy.

The three most common pre-bankruptcy mistakes to avoid are as follows:

1.  Providing inaccurate information about your income.
 An honest disclosure of income is important to the Bankruptcy Court.  To be successful, your bankruptcy needs to start with an accurate disclosure of income.  Be honest with your lawyer; always provide accurate answers to any questions asked of you.  Only by doing this can your bankruptcy lawyer provide the protection you need.  Failure to do this may cause suspicion by the Bankruptcy Court, the Bankruptcy Trustee, or your creditors and could end your bankruptcy case before it has a chance to succeed.

2.  Large expenditure of cash or adding debt right before filing.
 It’s understood that there are ordinary, daily expenditures and charges that everyone needs to make.  If you move money out of your bank account, make a large purchase, or run up credit card debt right before you file, the Bankruptcy Court may become suspicious.  If you do need to make a big expenditure, be prepared to explain it.

3.  Transfers of property or money to friends and relatives.
 There’s a 90-day review period pre-bankruptcy where transfer of assets to other people or organizations can cause a problem in Court.  Also, any sizeable transfers made to any relatives or friends in the previous year could also be reviewed, and if the court chooses, the transactions may be reversed.  Transfers of real property within two years of filing may be subject to scrutiny if cash was received.

When you talk to your Georgia bankruptcy lawyer before filing, make sure to mention anything in any of the above categories.  This will enable your bankruptcy lawyer to best help you and maximize protection for your assets. We know how complex bankruptcy can be. If you have questions or are ready to move forward call us at 404-524-6400 for a free consultation today.

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