What to Avoid When Filing For Bankruptcy Filing for Bankruptcy is sometimes the only way to protect yourself form the constant demands of creditors that you can’t afford to pay. But, bankruptcy law also has several provisions designed to prevent people from abusing the system that sometimes trip up innocent people. Here are a few of the things to avoid when filing for a Chapter 7 or Chapter 13 bankruptcy. Never Forget to List an Asset Assets in the case of a bankruptcy are anything that may be worth money and could potentially be sold to help pay your creditors. Most people filing bankruptcy don’t have anything of value. But, sometimes people are afraid of losing something sentimental and fail to list things on the bankruptcy schedule, or they aren’t thorough when making the list of their assets. The bankruptcy trustee is not likely to sell your wedding ring, but if you fail to list it with any other jewelry it can be a red flag that you are hiding something and the trustee may want to single you out for extra attention, Nobody wants this kind of attention. Never Transfer a Property Right Before Bankruptcy Do not try and protect one of your properties, i.e. house, car, etc., by signing the title over to a family member or friend and then not listing it on your bankruptcy paperwork. This could be fraud and it could be a federal crime. Don’t take chances. Stop Using Your Credit Cards Many people filing bankruptcy depend on their credit cards to pay bills. The problem is the closer to the date you filed for bankruptcy that you used your credit cards, the more it looks like you are abusing the system. You may have to pay back some of the money you put on your credit cards up to six months before you filed for bankruptcy. Once you do file, destroy your credit cards. Using your credit cards after you filed for bankruptcy can turn a simple case into a nightmare. If you have any questions about what to do before filing for bankruptcy call me, Ali Talai (818) 401-3867.
Posted on: Thu, 22 Jan 2015 01:29:56 +0000
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