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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