Top Things You Need to Consider Before You File for Bankruptcy

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Failed negotiations with creditors, imminent repossession, and ongoing foreclosure proceedings are some of the things that characterize one’s lowest point financially and in life. Your income, in this situation, may not be enough to cover your medical bills no matter how small they may be. If you reach a similar point in life, it may be the time to consider filing for bankruptcy. However, bankruptcy laws have evolved and people are constantly finding it hard to file. The following are some of the things you must do before filing for bankruptcy. Find out for further details on this homepage right here.

The most important thing you can do while filing for bankruptcy is to disclose your expenses, income, and assets in the petition. When you disclose your income, you are in a good position for a debt discharge. You will have proven to be honest to the creditors and you can proceed to repay your debts starting with those that have the highest priority. If you fail to disclose everything, not only will you lose the right to a discharge of your debts, but you may pave the way for criminal charges to be filed and fines imposed. Learn more info, go here.

When repaying debts, do not withdraw funds from your retirement account when you have run out of cash. Retirement funds are among the assets and income sources that are protected by the bankruptcy laws hence you should not use it to offset a debt. Before withdrawing anything from your savings, you have weigh all the negatives and positives involved. If you don’t have another option to repay creditors, just file for bankruptcy and leave your retirement benefits until a time when you will need them for your own use.

You shouldn’t raise a red flag by transferring ownership of some property or assets to your family members just before filing for bankruptcy. These transfers will be looked into and in some cases considered to be an attempt to reduce your assets. If it is determined that you attempted to hide assets, you will have your right to a discharge taken away.

You should desist from using credit cards if you are about to file for bankruptcy. Spending using credit cards at this moment when you are filing for bankruptcy is a clear indication that you will not be able to repay for the amount you are spending. When you use credit cards yet you aren’t able to repay your debts, it shows that you are doing this intentionally and this decision might end up leading to major complications in your case. It is important that you follow the things that have been mentioned here in order to successfully file for bankruptcy. While bankruptcy might seem a low point in life, you can use it as a positive thing to regroup your finances and improve your financial position. Take a look at this linkĀ http://legalbeagle.com/4906935-file-bankruptcy-lawyer.html for more information.

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