MISTAKES TO AVOID
7 Mistakes to Avoid Prior to filing Bankruptcy
1. THE CREDIT CARD RUN-UP MISTAKE:
Don't use your credit cards once you have made your decision to file bankruptcy. Consumer debts incurred for luxury goods and services owed to a single creditor in excess of $500.00 within 90 days of filing are presumed to be nondischargeable and may be found to be due and owing.
Cash advances of more than $750.00 within 70 days of filing are presumed to be nondischargeable and may be found to be due and owing.
Don't jeopardize your "fresh start" by running up your credit cards.
2. THE REPAY A FAMILY MEMBER MISTAKE:
With regard to repaying debts, you cannot treat your family member any better than you would an ordinary creditor. In fact, a bankruptcy trustee can reclaim any amount repaid to a family member within one year of filing bankruptcy.
3. THE LIQUIDATE YOUR RETIREMENT ACCOUNT MISTAKE:
Retirement accounts are generally protected. You can eliminate your debt and keep whatever you have in an ERISA qualified account, free and clear. Many individuals drain their retirement accounts in a futile attempt to pay down credit card debt.
4. THE TRANSFER PROPERTY OUT OF YOUR NAME MISTAKE:
A bankruptcy trustee can undo a transfer of property that previously belonged to you. This can occur if the transfer was made within two years of the filing of the bankruptcy with the intent to hinder, delay or defraud a creditor.
5. THE LINE OF CREDIT/SECOND MORTGAGE TO PAY DEBT MISTAKE:
Don't take a loan against your real estate in an effort to reduce the equity. You can often file bankruptcy and not lose this valuable asset. If you take out a second mortgage to pay credit card debt, you may be putting your house at risk.
6. THE FAILURE TO APPEAR AT COURT PROCEEDINGS MISTAKE:
If there's a collection case pending against you in state or federal court, don't assume that you can avoid the court process simply because you've decided to file bankruptcy. Until your bankruptcy case is filed, a collection case continues.
7. THE FAILURE TO TELL YOUR ATTORNEY THE TRUTH, THE WHOLE TRUTH AND NOTHING BUT THE TRUTH MISTAKE:
An attorney can only provide advice based upon information provided by the client. Failure to notify your attorney about your assets can lead to the loss of those assets, denial of your bankruptcy case, fines, imprisonment or all of the above.
Doan Law Firm & Miller Legal Center
The Law Offices of Doan Law Firm
and Miller Legal Center
We provide pre-petition planning to assure you the highest level of protection available. More than 99% of our clients KEEP EVERYTHING AND LOSE NOTHING. Our offices can achieve this by careful pre-petition planning and by taking advantage of the special exemptions allowed you by law. If you live or work in the greater San Diego area and have questions about Bankruptcy, why not call now? We will be happy to schedule your FREE no obligation initial consultation to answer your questions about Bankruptcy. Your Free consultation with an attorney takes only about 30 minutes and isn't your financial future worth 30 minutes of your time???
Material on this site should not be considered legal advice and does not constitute an engagement of Doan Law Firm or Miller Legal Center. The information contained herein is of a general nature and may not apply in your particular circumstances.
