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Understanding What Bankruptcy Really Means


How To Ensure A Smooth Process When Filing Chapter 7 Bankruptcy

The court does not condone bankruptcy errors. Therefore, making any mistake in your application might get you into serious problems with the authorities, even if it was not intentional. For this reason, you shouldn't do anything that might insinuate that you intended to hide the truth about your debts. But while working with a bankruptcy attorney, you are less likely to make such costly errors. This article shares some of the guiding tips your lawyer will offer you to ensure a smooth process. 

Not to Transfer Your Belongings

Your legal advisor understands the gravity of the document verification process conducted by the bankruptcy trustees. In that regard, they will discourage you from transferring any of your belongings to another person's name. That is because the trustees might detect this move when scrutinizing your records. The court might consider this to be bankruptcy fraud and can punish you for it. 

Besides that, transferring your assets to another person puts you at risk of losing them altogether. For this reason, you should first seek advice from your legal representative before executing this move. They will advise you on how to handle your assets to ensure that you keep them after the case completion.

Not to Pay Some Creditors

You might consider paying some of your creditors in full as you file for bankruptcy. While this seems a noble decision to reduce the debt burden, it can get you into trouble. Such transactions are illegal, and the bankruptcy trustee may recommend tough measures against you for undertaking preferential transfers. Therefore, it's advisable to notify your lawyer when paying a creditor before or during the case proceedings. 

Not to Deposit Huge Amounts of Money

Depositing huge amounts of money in your bank accounts may lower your chances of qualifying for chapter 7. The court might assume that you have other money-making ventures and hence don't deserve a bankruptcy benefit. For this reason, you shouldn't deposit any money that is not considered salary or payment. That includes any money you could receive in favor of others or conducting business transactions using personal accounts. Doing so would make it challenging to prove that the money wasn't yours, blowing your chances of qualifying for bankruptcy.

Choosing to work with a bankruptcy lawyer is an invaluable idea when filing chapter 7 bankruptcy. They will help you discover hidden dangers you might encounter in the application process. That way, you'll avoid mistakes that might make you fail to qualify for insolvency or get you into trouble with the authorities.

Contact a bankruptcy law attorney to learn more. 

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Understanding What Bankruptcy Really Means

When you begin making strides towards a healthier, more financially sound future, there are a lot of things that you can do to simplify the process for yourself. While paying down debt and working towards a simpler lifestyle can make a big difference, sometimes a bankruptcy is required to make things better. Bankruptcy will essentially clear the slate for you and your family, making it possible to move forward without worrying about heavy bills hanging over your head. On this helpful website, check out great tips and tricks that could make it possible to prevent problems in the long run, so that you can make things better.

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