Seven Deadly Sins Bankruptcy

Jun 22 2011

Seven Deadly Sins Bankruptcy

Posted by administrator in Bankruptcy

Tags: bankruptcy, Deadly, Seven, Sins | Add comment

While considering what to write next about the subject of personal bankruptcy, I started thinking about some of the conversations I have with many clients or potential clients. Every client situation is unique, but it seems that a lot of common problems continue to arise. Here are the general bankruptcy of errors:

1. Credit Cards eve of sin:

When Congress was considering debt should not be allowed to be discharged, they put these problems right in front of the line (actually second in line to certain types of taxes)! Consumer debts for luxury goods or services over $ 550.00 within 90 days prior to filing for bankruptcy is considered to be nondischargeable. Also, if you receive cash in amounts greater than $ 825.00 within 70 days before the bankruptcy debts are nondischargeable.

There are good reasons Congress makes the law as it is today. Think about the word justice. Do you think it’s fair for someone to come to you to borrow money when they had no intention of ever paying you back? That’s what happens when Congress allows people to release the debt, which they released on the eve of filing bankruptcy. I personally have no sympathy for the credit card company, but at the same time I support the law passed, so people are not of direct theft. Any good bankruptcy lawyer will advise you to stop using your credit card, even if you’re thinking about filing bankruptcy. Chances are, if you’re reading this, you may need to stop using your credit card. There are ways to solve this problem if it occurs.

2. Pay for the sins of family members:

Here’s the bottom line – when it comes to paying debts, you can not relate to a family member is better than any other lender. It is important to be aware of this sin is that the administrator can go to family members and family members are doing to deliver any trustee the amount you paid for a family member within one year of filing bankruptcy.

3. Real estate transfers of sin in his name:

Once the client finds out that they can be released only one car, the customer insight and decided to pass all but one car that went out of their names. Usually they get a friend or family member to take ownership of the vehicle. Most of the time they get money for a vehicle and intends to hand back to his name after filing bankruptcy. I really must charge an additional fee for a client who decided to make this mistake, because it is a punch in the stomach when I have to stop everything in this case, to help them undo what they did. One consequence of the bankruptcy trustee with the destruction of property transfers, taking property, liquidate assets, and use the money to pay creditors. Rigorous impact involving a complaint of the United States Trustee to cancel the reset. It is never good when the unit U.S. Department of Justice file a federal lawsuit against someone. The rules to remember with this sin is that it is illegal to transfer the property with the intent to hinder, delay or defraud creditors. By the way, I do not think for a moment that all the possible schemes have not tried. There are some simple ways to solve legal and estate planning. Talking with a qualified bankruptcy attorney before you do something you might regret.

4. Elimination / borrow against your retirement sin

Sin does not get you thrown in jail, but still definite kick in the gut. In almost every situation, retirement accounts are generally protected and can not be taken from you into bankruptcy. Before cashing in mind that you worked hard and that you plan to use for retirement, consider filing for bankruptcy. They are honest tears in my heart to see people who really nothing left after years of cashing / loan from the pension plans. Seeking help before you steal from yourself.

5. Credit lines / sec mortgage to repay the debt of sin:

Sin is sin, like the above. As a general rule, your estate is protected and can not be taken from you into bankruptcy. Do not take against your home in an attempt to pay by credit card. All this will do is increase your monthly payments and reduce equity. Your home investment, you should see the long term. No impact on short-term fix that may not solve the underlying problem. In addition, it can potentially put your home at risk in the future. Again, you can often file bankruptcy and not lose a valuable asset.

6. The failure appeared in court a sin:

Many of my clients are suing before they went bankrupt. Sometimes one does the trick ostrich and stick their heads in the sand. Not face a lawsuit can cause more problems than just dealing with it. Problems may include the reduction of wages that can be financially difficult and uncomfortable. Additional problems may include the conclusion that all the money in your bank account has been charged or “frozen”. This may lead to payment of the creditors want you to pay such as rent, mortgage, and electricity to rise and cause problems big overdraft.

The biggest problem surrounding the claim may include a decision for yourself, what’s the point in your home. In basic terms, the assessment becomes a lien on the property. This means that if you have your own house and judgments against you, your house has a lien on a number of court decisions. These deposits can be removed or avoided, but it’s an extra step that takes time and can become a serious problem when you go to sell your home. If you do not directly relevant creditor or his attorney, bankruptcy attorney have to do it for you.

Another thing that makes that even if you decide that you will be filing bankruptcy, you are not fully protected until the case is actually filed and collection activities can be resumed. Until your bankruptcy case is actually filed the case collection can be resumed.

7. Failure to tell your lawyer the truth, the whole truth and nothing but the truth of sin:

Bankruptcy lawyers do not have a crystal ball and, therefore, can not see into the soul of humanity. In every field of law, your lawyer can only give legal advice based on information provided by you. Refusal to disclose assets, debts, transfers, income, or anything related to your case may result in loss of assets or the denial of your bankruptcy case. We do our best to get to the root of the problem when we meet with our clients, and my clients usually do not lie. When that happens, however, the consequences can be serious. Intentionally lie can produce not only the loss of assets, but also may result in denial of your bankruptcy case, fines, imprisonment, or all of the above.

The best path of action to avoid the seven deadly sins of bankruptcy to seek legal advice about debt and your rights before you do anything. Even if you have taken certain actions that you think may cause problems, as mentioned above, you should consult an attorney to determine the best course of action.

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