August 26, 2011

A-Z of Bankruptcy Errors

Posted in Bankruptcy tagged at 12:16 am by demetriagraves

Helping clients prevent heartache during bankruptcy filing is important to me. Many clients are embarrassed about certain areas and are reluctant to discuss them or perhaps certain things are forgotten about because they don’t seem important. But I’ve been in the difficult situation of helping a client file for bankruptcy and some important piece of information comes up that wasn’t disclosed early on and this has forced us to back-pedal. It’s really important to know before you go in any area of life, especially with a life changing experience like filling for bankruptcy. With this in mind I decided to compile a quick A-Z of common bankruptcy filling errors, that can even be used as a checklist to make sure we’ve covered all the bases when proceeding with a bankruptcy filling.

The A to Z of bankruptcy filing errors.

a. Not disclosing all your income.

b. Not disclosing all your debts, including family debts.

c. Not disclosing all major transactions in the past 4 years.

d. Not completing both financial courses when required.

e. Not showing up for appointments or the required Meeting of Creditors.

f. Leaving your money in a bank which will “freeze” it for 60 days.

g. Leaving money in a bank which will keep it to pay your credit card.

h. Not handling your car loan properly (there are alternatives).

i. Going on a spending spree before filing.

j. Buying luxury goods or services 90 days or less before filing.

k. Taking cash advances within 70 days of filing.

l. Not telling your attorney of prior bankruptcies.

m. Not telling your attorney about prior out-of-state addresses.

n. Paying off your car loan (or any other debt) before filing.

o. Thinking a living trust (that’s less than 10 years old) will protect home equity

p. Not bringing your drivers license and Social Security Card to the hearing.

q. Not disclosing all lawsuits you’re involved in.

r. Not disclosing a business you own in full or in part.

s. Not disclosing property if you are on title.

t. Not disclosing if you used a second social security number.

u. Letting your home be foreclosed before the filing.

v. Letting your car be repossessed before you file.

x. Letting a creditor or the government seize your business before you file.

y. Not disclosing money paid to other professionals within the past 4 years.

z. Believing you can do it yourself.

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