If you’re thinking that you may need to file for bankruptcy and you’re not really familiar with the process you may be surprised to know that you won’t lose everything. Many people try anything they can think of including selling off property or investments, in order to avoid bankruptcy, and they still find themselves unable to get out from under their debt.
The first thing that you should do if you find yourself on the brink of bankruptcy is to consult with an attorney who is familiar with your state’s bankruptcy laws. Don’t jump the gun and relinquish an asset that may be considered exempt under the law.
When you file for bankruptcy you will have to provide detailed information about any and all recent financial transactions that you have made. So if you try to repay the part of your debt that you owe to a family member or personal friend before you file, you will be discovered. This is known as “insider transfer,” and the money can be reclaimed.
Some people figure “ok, I’m going to be bankrupt soon so I’ll splurge now.” Credit card companies for example, keep track of your activity and they will notice any sudden increase in charges or cash advances. If you file for bankruptcy shortly after a significant transaction it can be construed as bankruptcy fraud, a serious crime that could get you in big trouble.
Trust your bankruptcy attorney, he is on your side. But in order to help you to the best of his ability your attorney has to be well informed. Don’t hold back any information that could potentially be used against you as the bankruptcy procedure moves along. Any surprises around the bend could be a deal breaker when it comes to sorting out your exemptions. Don’t let embarrassment get in the way of disclosure, you’re bankruptcy attorney is not there to judge you, he is acting in your best interests.
The offices of the Parker Lawyers firm is located on Pikes Peak Drive in Old Town Parker. Call 303-841-9525 to set up a consultation.