Making the decision to file a bankruptcy case is an extraordinarily difficult one, as it is. Factor into the equation that you can make some seemingly honest decisions that could be viewed as fraudulent by a Bankruptcy Judge, and the process becomes overwhelming. I strongly recommend that you meet with an experienced bankruptcy attorney prior to making any pre-bankruptcy financial planning that may compromise the benefits you would otherwise realize in a bankruptcy case. At the Law Offices of Scott W. Spradley, P.A., I will personally meet with you during the Free Consultation I offer and discuss these issues in detail--before you make a potentially critical mistake that you could later regret. These potential mistakes include:
Putting off making a decision regarding your debt situation. Creditors will use your reluctance to seek bankruptcy protection as an opportunity for them to initiate legal actions to collect on a debt, including repossession, foreclosure, wage garnishment and freezing your bank accounts.
Using the equity in your home to pay off your debts. If you default on home equity loan, the lender could initiate a foreclosure case, just as your first mortgage holder could. Consequently, you do not want to needlessly increase your obligation on your home equity loan if you do not have to. Paying off or paying down credit cards by using your home equity loan is very risky if you wind up filing bankruptcy, anyway. Filing bankruptcy, however, may instead allow you to eliminate your debts without requiring you to borrow against your home equity.
Making purchases for luxury good or obtaining large cash advances shortly before filing bankruptcy. This activity could be construed as fraud by a Bankruptcy Judge, and could result in your remaining obligated after your bankruptcy for the purchases and for the cash advances that you took after you formulated the intention to file bankruptcy.
Repaying loans to family members. If done during the year before your bankruptcy case, a Bankruptcy Judge can require your family members to give back the money you paid them, and direct the Bankruptcy Trustee to distribute the money to your creditors. .
Transferring your personal property and real estate. This type of activity could also subject you to scrutiny by the Bankruptcy Trustee and jeopardize your ability to obtain a Fresh Financial Start.
If bankruptcy is in the picture for you, please contact us and schedule your Free Consultation with me at The Law Offices of Scott W. Spradley, P.A., before you make any moves which could jeopardize your Fresh Financial Start.
Contact the Law Offices of Scott W. Spradley, P.A. for legal counsel and representation if you are contemplating bankruptcy.