Thursday, June 29, 2017

Four Things Not to do if You’re Considering Bankruptcy in Georgia

Millions of people across the country declare bankruptcy every year. The best way to move forward if you’re considering bankruptcy is to work with a local bankruptcy attorney who can walk you through the process. When you choose King & King, we can help you avoid the common mistakes people make before they file and put you on the path to financial freedom. 

Don’t take on new debt
If you take on new debt immediately prior to filing bankruptcy, it may appear to the court to be fraudulent or in bad faith. The court will want to know the amount of the new debt, how long ago you took it on, whether it was a luxury purchase, and other factors.  Don’t risk your bankruptcy filing for a purchase you don’t need to make.

Don’t take money out of your retirement plans
In many cases, retirement plans are completely exempt from liquidation in a Georgia bankruptcy. As a result, we advise you not to take out any money from your retirement accounts, IRAs, 401ks, etc.

Don’t skip your Georgia bankruptcy exemptions
There is property that’s exempt from unsecured creditors in a bankruptcy. You’ll want to review all the potential exemptions with your attorney to make sure you’re not missing out on them. We will review all of your assets, and in the majority of cases you will be able to keep 100% of them.

Don’t pay back your family or friends right before you file
If you pay back someone you have a personal relationship with within one year of filing, it’s likely to be considered a preferential/insider transfer. Speak to your bankruptcy attorney before paying anyone back or giving any cash gifts.

If you are still considering your options and simply want to better understand if Chapter 7 or Chapter 13 bankruptcy is better for you, contact King & King bankruptcy attorneys today at 404-524-6400 for a free consultation.