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Understanding Bankruptcy Cases and Outcomes

Hello, my name is Quianna Ridalgo. I enjoy talking to others about bankruptcy case outcomes. Court officials handle each type of debt, from credit cards to home loans, differently. Debtors must carefully prepare themselves for the court proceedings to cope with the outcome appropriately. The way creditors handle the discharged debt also interests me. Bankruptcy attorneys assist their clients with each step of the bankruptcy process from filing paperwork to meeting with creditors. Debtors and creditors both receive counsel that helps them move forward appropriately at every point in the case. The information I share on my site may help you learn about everyone's role in these complex cases. Feel free to come by anytime to learn more information about this interesting subject.

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Understanding Bankruptcy Cases and Outcomes

Things To Avoid Before Filing For Bankruptcy

by Loretta Harris

If you are in desperate need of financial relief and have decided to use bankruptcy, there are several important things you should avoid doing before you file. If you do the wrong things, it could harm your case, and here are some of the top things you should try to avoid doing before you file.

Racking Up New Debt

Some people will intentionally use their credit cards to buy things they want just before filing. They assume that the bankruptcy will eliminate their debts, so why not spend some extra money? Well, this is a bad idea to do, primarily because this is bankruptcy fraud. You should never intentionally rack up debts with the idea that the bankruptcy case will wipe out the debts. In addition to this, you should avoid taking cash advances from your credit cards just before filing.

Your lawyer will look at your recent purchases and charges for your credit cards. If he or she sees these types of things, the lawyer might tell you that you should wait a while before you file as it will look bad on your case.

Giving Things Away

The second thing you should avoid doing is giving things away. If you plan on filing for Chapter 7, you probably know that court can take your assets as a means of raising cash to pay off discharged debts. Some people will try to avoid getting their assets taken from them by giving them away before they file. This too is a form of bankruptcy fraud. If you are caught doing this, the trustee could dismiss your case for fraud.

Failing to File Your Taxes

Finally, you should realize that when you file for bankruptcy, you will have to submit your most recent tax return to your lawyer. You may even need to submit the prior year's taxes as well. If you have not filed the latest return, or if you have missed filing any of your returns, it could mess up your bankruptcy case. You will not be able to file if you do not have your tax return, so you should avoid failing to file your taxes.

A good bankruptcy lawyer can review your current financial state to see if you qualify for bankruptcy and if it would help you. To learn more about bankruptcy and the options you have, talk to a law firm, such as Haven Law Group, P.C. , in your city.

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