Tuesday, August 13, 2013

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.

To learn more visit http://sacramentobankruptcylawyer.us/

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