|Hiring a Bankruptcy Lawyer|
|Written by Administrator|
The bankruptcy laws have recently changed, making it more complicated to file and effecting how you move forward after filing.
For example, if you pay one creditor within a certain amount of time before filing, the court can void the payment and redistribute the money to the various businesses to which you owe money.Countless details are involved in the process of filing and financial obligations. A bankruptcy attorney may better be able to answer your questions about the law and how it relates to your current financial circumstances.
Things You Shouldn't Do in BankruptcyWhen you visit a bankruptcy lawyer, you will discuss some of the things that you should never do financially. Certain actions can result in serious repercussions. Here is a list of things that you should never do financially:
1. Postdate checks: NEVER try to satisfy a debt to a creditor with a check dated in the future. If the check should bounce, you could be charged with a crime and end up in jail. Even if you file for bankruptcy, you will still be in BIG trouble. The action will not save you from being brought up on criminal charges and prosecuted to the fullest extent of the law.
2. Transfer Property: When you file for bankruptcy, every one of your assets and liabilities must be included in the process. More than one dishonest individual has tried to transfer property to a friend or family member, to protect it from future bankruptcy proceedings. In fact, nothing that is transferred up to a year before the bankruptcy is exempt from claiming as an asset. If you try to hide it from the bankruptcy trustee, (the person overseeing your case) you can be charged with fraud. Then, you will have more legal troubles than you would imagine.
3. Credits and Cash Advances: Be careful about spending money you do not have within 2 months of filing for a business bankruptcy. If you run up a debt of more than $1100, you will still be responsible for the amount you owe, even if you file bankruptcy. A good rule of thumb: if you do not have it, do not spend it.
4. Play it Close to the Vest: If you are on the verge of filing business bankruptcy, now is not the time to volunteer any information or assets. Information you may have is on a need-to-know basis. For example, do not voluntarily offer to return any assets that may be a necessity later. Many people make the mistake of giving a car back when they may need it to find employment and a way to support the family later.
A bankruptcy lawyer may also be able to discuss your course of action, should you not be able to avoid bankruptcy. You will need to decide whether you should file Chapter 7, Chapter 11, or Chapter 13 bankruptcy.
Chapter 13 is a reorganization bankruptcy. Under the terms of this legal action, the court will have to approve a schedule of reasonable payments to your various creditors.
No Way OutFinally, an attorney will advise you what debts cannot be resolved in a business bankruptcy. No matter what you do to relieve your financial obligations, you will not be able to avoid:
• Alimony or Child Support
• Back Taxes
• Student Loans
• Government Fines and Penalties
• Debts after Bankruptcy Filing
No matter how bad your financial troubles become, you are still obligated to pay off certain debts and obligations. Bankruptcy is meant to help you get a fresh start or have time to pay off creditors.
If you have additional questions about bankruptcy and the bankruptcy process, consider speaking with a local bankruptcy attorney who may help better identify the law and how it pertains to your current financial circumstances. Get answers today.