February 11, 2012
/24-7PressRelease/ -- Tips for Filing Personal Bankruptcy
The decision to file bankruptcy is never an easy one to make: many would prefer not to have to take that step. However, once a person decides on bankruptcy, he or she needs to be aware of several potential pitfalls in filing the petition that could disrupt the process. If people follow some simple tips when preparing their bankruptcy petitions, they can avoid a great deal of trouble later.
Do Not Wait Until the Last Minute
Many people find it difficult to face their financial difficulties squarely, and they act as if they just ignore the troubles they will somehow evaporate. However, if people wait too long to act, they face even more negative repercussions such as wage or bank account garnishment, foreclosure, or detrimental changes in their means test calculations. Filing bankruptcy at the last minute may also prevent a thorough review of a person's financial situation and bankruptcy qualifications. A good attorney recognizes that one of the most important things in a bankruptcy case is "timing." If you wait till the last moment, those timing options may evaporate.
Be Honest
A person filing bankruptcy needs to be honest when filing the petition. Trying to hide assets or income from the Trustee may result in the court dismissing the petition and barring the filer from re-filing for bankruptcy on the debts he or she listed in the petition again.
Include All Financial Information
People need to include all of their financial information when filing bankruptcy -- even if the information does not seem significant to the filer. Include income from all jobs, no matter how little, and all vehicles and other assets in the filer's name, even if the filer does not use them. People should remember to list any lawsuits they have pending as well, either against other parties or against themselves.
People need to list all creditors and debts on the application, as well. Some people make the mistake of failing to list credit cards they have on their petitions because they do not carry balances on those cards or wish to keep the account open. Some people also leave off auto loans from their petitions, which is a mistake.
Understand the Rules
Violating bankruptcy rules can result in the court dismissing the petition, so people should understand what they can and cannot do before filing bankruptcy. Many people try to pay off family or friends money they owe prior to filing bankruptcy to ensure their loved ones get the full amount they are due. However, bankruptcy laws prohibit paying off select creditors (90 days), and especially family (1 year), prior to filing.
Bankruptcy laws also prohibit transferring assets out of the debtor's name within the 12 months prior to filing, as well as amassing a great deal of debt on credit cards just prior to filing.
Consult an Attorney
Bankruptcy laws are complex and people considering bankruptcy can often benefit from the assistance of an experienced attorney to help prepare the petition, help with pre-petition planning, and guide them through the bankruptcy process.
Article provided by Robert I. Cohen
Visit us at http://www.denverbankruptcylaw.com
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