Bankruptcy Lawyer in Montgomery County – What to Avoid Before Bankruptcy
Bankruptcy is complicated. When filing for bankruptcy, you must account for all of your assets, liabilities, expenses and incomes. Many people make mistakes before they file their initial petition. Unfortunately, those mistakes can cause serious problems and even disqualify you from seeking bankruptcy protection. Contacting a bankruptcy lawyer in Montgomery County is always recommended to avoid costly mistakes.
Bankruptcy Mistakes to Avoid:
1. Continuing to Use Credit
Bankruptcy, first and foremost, is sought in good faith. Avoid using credit in the months before you file. You are seeking the court’s protection because you are unable to pay your debts. The court will take a dim view of your filing status if it discovers that you continued to use credit right up until you filed.
2. Transferring Property
You are not permitted to transfer property to another person as a means to shield it from collectability by a creditor. When you do make such a transfer, the transfer could be grounds for disqualification or even a fraud investigation.
3. Selectively Paying Creditors
Debts are assigned priority based on statutory formulas, as opposed to a moral code. In fact, if you do selectively pay off creditors, the bankruptcy trustee may sue those individuals to recoup the funds back into the bankruptcy estate.
4. Altering Other Financial Transactions
While filing for bankruptcy, continue to operate normally. You cannot refrain from making deposits, and you cannot use personal accounts to conduct business transactions.
5. Not Filing Income Tax Returns
Always file your tax returns. Going through bankruptcy does not relieve you from your state and federal tax obligations. Moreover, bankruptcy courts rely on tax returns as critical evidence to establish incomes and ownership over property.
6. Receiving Future Payments
The bankruptcy estate has an interest in all future payments that are not yet received, including bonuses and inheritances. You cannot remove these from the estate. In the event you attempt to, the court may dismiss your case.
7. Ignoring Collection Actions
Never ignore collection actions. Once a creditor obtains a judgment, it may take steps to collect – including garnishment of wages and property liens.
8. Providing Inaccurate Information
You must submit accurate information to the court, including testimony and financial documents.
Alfred Abel Law Offices Can Help
A bankruptcy lawyer in Montgomery County is critical to ensure that your case is not dismissed due to an easily prevented error. Once your case is dismissed, there are few opportunities for do-overs. Alfred Abel Law Offices can provide you with expert legal advice and help you with your bankruptcy case. Contact the Alfred Abel Law Offices today!