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The Importance of Getting Good Bankruptcy Advice

Posted By Allmand Law Firm, PLLC || 19-Nov-2013

Common Mistakes Made When Filing Bankruptcy

Sometimes you may hear about a person filing bankruptcy and their case may not have the ending they were looking for. Sometimes a case can be dismissed or the debtor could end up losing their assets when they decide to do things differently instead of going by the code. Other times a poor result may come from receiving bad advice on how to go about filing for bankruptcy. This is why consumers are urged to get advice from an experienced bankruptcy attorney.

If you are considering bankruptcy you should take time to get the facts about filing. You should understand that being honest about your finances can get you closer to getting the relief you need more than you think. Bad advice may cause you to file paperwork incorrectly, underestimate the value of your assets, and even have the court view you as someone who is not trustworthy, especially if you provide false information under oath.

A Chapter 7 bankruptcy filing that took place in California earlier this year looked like it would have been suitable as a no asset case. The debtor had a jewelry business and house with a combined estimated value close to $2 million. Schedules submitted were learned to be inaccurate since it didn't mention jewelry inventory (roughly $50,000) of the business and home equity (over $1 million) connected to the house.

The debtor claims they got bad advice from a law firm practicing with no license. The debtor wanted to get their case dismissed or changed to a Chapter 11 bankruptcy, but the judge did not grant this request since they proceeded under bad faith. Equity in the home and business inventory may likely satisfy creditors.

Anyone considering bankruptcy should get legal advice from an experienced bankruptcy expert in Dallas or Fort Worth. Take time to compare legal options and get sound legal advice that will help you efficiently get through the bankruptcy process.

Reference: http://www.txbankruptcyblog.com/2013/10/articles/bankruptcy-news/bad-bankruptcy-advice-can-spell-disaster/

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