Bankruptcy Tips

Consult with a bankruptcy attorney as soon as debt becomes overwhelming or when you are just making the minimum payments.  A bankruptcy attorney can educate you as to your options early on, saving you months of wasted time paying down interest on debts you can eliminate in bankruptcy.  Also, a bankruptcy attorney can help you prioritize your debts and create a manageable plan for eliminating debt.  Part of that plan may include discharging debts in chapter 7 bankruptcy.  Another part of that plan may include budgeting for non-dischargeable debts.

Don't try to hide assets.  Many people think that they can get one over on the bankruptcy trustee.  They think that they are smart enough to hide an asset in bankruptcy so that it won't be sold.  Later on when they are caught these same people often believe they can deflect the blame onto their attorney by lying and saying "but Mr. Trustee,  I told my bankruptcy attorney all about this asset."  Do yourself a favor and disclose all assets to your attorney and don't even try to hide an asset in bankruptcy.  Don't sell your car to your brother on the eve of filing and don't gift thousands of dollars to your son right before you file for bankruptcy.  If you're lucky you will just be denied a discharge entirely.  If you're unlucky you will have committed a bankruptcy crime and be punished accordingly.

Tell your bankruptcy attorney everything when it comes to your past transactions, income, debts, and assets.  Your bankruptcy attorney needs this information to protect you and your property down the road.  You're not doing yourself any favors by only giving him half the picture because you are embarrassed about something or think that by not telling him you can hide the asset down the road.  When in doubt, disclose, disclose, disclose.

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Evaluate Your Bankruptcy Options Early

Many people wait to the last minute to file for bankruptcy.  For example, many people facing foreclosure wait until the day before the foreclosure sale to contact a chapter 13 bankruptcy attorney.  During the call the individual will state that they are facing a foreclosure sale tomorrow and need to file an emergency bankruptcy petition today.  This is possible, but often not optimal.  It would have been far better for both the attorney and client if the individual had contacted the attorney as soon as they received notice of the foreclosure.  With this advance notice the attorney and client could have drafted a solid chapter 13 plan and been well prepared for the eventual foreclosure.  Instead, by waiting until the last minute the filing and preparation of the documents will be rushed.  The moral of this story is to evaluate your bankruptcy options early; don't wait until the last minute.

Learn more at http://sacramentobankruptcylawyer.us/