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The Seven Most Frequent Bankruptcy Errors

The Seven Most Frequent Bankruptcy Errors
"""The actions you perform prior to declaring bankruptcy can have a significant impact on your journey through the bankruptcy procedure. You should pay close attention to these seven possible trouble locations.

The credit card overuse error:
Once you have decided to file for bankruptcy, it is best to refrain from using your credit cards. Debts for luxury products and services in excess of $600 owed to a single creditor within 90 days of filing are presumed to be non-dischargeable and may be deemed due and owing! Even cash advances exceeding $875 within 70 days of filing are presumed to be non-dischargeable and may be determined to be due and owing.

When it comes to debt repayment, you cannot handle a family member any differently than you would a regular creditor. In fact, a trustee can reclaim any amount repaid to a family member within a year of filing for bankruptcy.

A bankruptcy trustee can rescind a transfer of your property. This unexpected occurrence is possible if the transfer was made within four years of the bankruptcy filing with the intent to hinder, delay, or defraud a creditor.

The error of liquidating your retirement account: your retirement accounts are generally safe. You can eliminate your debt and retain your assets in a debt-free ERISA-qualified account. Too many people deplete their retirement accounts in an attempt to pay off their credit card debt.

The error of using a line of credit or second mortgage to pay off debt:
Avoid taking out a loan against your property in an effort to reduce the equity. Generally, you can declare insolvency without losing this valuable asset. If you obtain a second mortgage to pay off credit card debt, you may endanger your residence.

The failure to appear at court proceedings error: If a collection case is pending against you in state or federal court, do not presume you can avoid the court process by filing bankruptcy. A collection case can continue until a formal bankruptcy petition is submitted.

The error of failing to tell your attorney the whole truth and nothing but the truth.
Your attorney can only offer advice based on the information you provide. Failure to inform your counsel of your assets may result in the loss of those assets, the denial of your bankruptcy case, fines, or imprisonment, or all of the above.""

" - https://www.affordablecebu.com/
 

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"The Seven Most Frequent Bankruptcy Errors" was written by Mary under the Finance / Wealth category. It has been read 164 times and generated 1 comments. The article was created on and updated on 01 June 2023.
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