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Working With A Bankruptcy Professional

A few years ago, when I realized that I couldn't pay my mortgage anymore, I knew that I needed to do something to correct my finances. It seemed like I just couldn't catch a break, and after losing my job, I knew that I was in trouble. I started looking for new work, but I knew that I needed to fix my credit somehow. I was at the end of my rope, until a friend talked with me about the possibility of declaring bankruptcy. She explained that it helped her to start over. I met with a bankruptcy attorney who was incredible to work with, and I was amazed at how much it helped my situation. Check out this blog to learn how working with a bankruptcy professional could help you.


Working With A Bankruptcy Professional

The Worst Mistakes Made When Applying For Bankruptcy

by Roël Schiks

Declaring bankruptcy should ease your financial stress and give you a fresh start. However, your application might produce unfavorable results if you don't follow the right steps. Unfortunately, this might worsen your situation because it will allow creditors to take legal action against you. Besides, some errors might get you into trouble with the court, and the judge might order you to pay a fine or sentence you to prison for fraud. Here are the biggest mistakes you could ever make when applying for bankruptcy.

Repaying Some of Your Debts Before Your Application

Repaying some of your debts before applying for bankruptcy can make your financial situation worse, regardless of the type you choose. For example, if you pay some of the money you owe before filing chapter 7, the trustee might accuse you of making preferential payments. As a result, they might recover all the money you had paid. On the other hand, in chapter 13, the trustee might include the money you have paid your creditors in your repayment plan. That explains why you should not pay any debts for a few weeks or months before declaring bankruptcy.

Transferring Assets Out of Your Name Before Your Application

Many people believe that no one will go after their assets when they transfer ownership before applying for bankruptcy. However, that is not the case. The bankruptcy trustee takes time to investigate each applicant's financial details. Therefore, they will discover your transfers even if you hide this information from them. Because of this, they might reverse the transfers and take legal action against you for trying to defraud the court. Working with a bankruptcy lawyer is the best way to save your assets. They will know how to present your case to enable you to keep most of your valuable property even after declaring bankruptcy.

Delaying Getting Legal Help

The biggest mistake people who are overwhelmed by debt make is failing to get legal help. They only do so when creditors threaten to take legal action against them or after their application fails. Unfortunately, most people don't manage to make another application on time to prevent creditors from acquiring their assets. This explains the importance of getting legal help as soon as possible. Your lawyer will assess your situation to know the measures to take to get financial relief when needed.  

Many mistakes bankruptcy applicants make are avoidable by working with a bankruptcy lawyer. Therefore, if your financial situation is getting out of hand, you need legal help immediately. Your attorney will prepare and file your application, ensuring that they avoid any mistakes that might make you fail to qualify for bankruptcy. 

Contact a local bankruptcy attorney for more info.