Although the idea of filing bankruptcy can be upsetting and a bit overwhelming, it can actually be the perfect solution to get your finances back on track. However, there are a few things that many people do that can jeopardize their bankruptcy cases. It's important to be careful about how you handle your finances before talking to a bankruptcy lawyer about your bankruptcy claim, so make sure that you avoid these things if you want your case to go as smoothly as possible. Then, you might find that bankruptcy is the perfect solution to all of your debts and financial problems.
1. Transfer Things Into a Loved One's Name
Even if it's perfectly innocent, it can be a bad idea to transfer any of your possessions into a family member or friend's name. Some people do this in an attempt to keep their belongings without selling them to pay off their debts, so the courts can look very negatively at this type of behavior. If you are planning on truly selling or giving your property to a family member as a gift, you should talk to your bankruptcy lawyer about it first.
2. Pay Off Your Creditors
You might think that it's a good idea to pay off as many of your debts as you can before you file bankruptcy, but there is a right and wrong way to do it. If you pay large payments to certain creditors, the court might think that you are "playing favorites" and could deny your bankruptcy claim. Before you send any money to any of your creditors, you should talk to your lawyer about it first.
3. Try to Handle Your Case on Your Own
If you're going through bankruptcy, you are obviously having a tough financial time. This means that you might think that it will cost too much to hire a lawyer. However, it can be a mistake to try to file a bankruptcy case without the help of an attorney. You could make mistakes that could cause your claim to be denied, for example, or you could even get in trouble for bankruptcy fraud if you do the wrong things. Regardless, it's critical to hire a bankruptcy lawyer like Abakhan and Associates to help you through the entire process.
Bankruptcy can be a great thing for those who are financially strapped, but it's important to go about it the right way. Avoid these three things, and you can avoid a lot of common problems when filing bankruptcy.