If you are considering bankruptcy or have plans to file bankruptcy, getting
prepared ahead of time can affect the outcome of your case and your financial
future. At Allmand Law Firm, PLLC, we know that failing to prepare or
taking the wrong steps can significantly jeopardize the success of a filing.
This is why we do all we can to educate our clients about the journey
ahead and their rights, and to provide them with all the information,
assistance, and resources to make the process run as smoothly and sufficiently
We have seen how many individuals struggling with debt have made mistakes prior to
bankruptcy filings – including some with disastrous consequences. Here are
a few things to avoid before filing bankruptcy:
- Neglecting to file tax returns – Your tax returns are important and are required as part of your petition
and schedules (filing paperwork). They are important in helping satisfy
back income tax claims. If tax returns are not filed up to date, your
case could come to a standstill.
- Providing false information – When you decide to begin the filing process you will be required to
submit financial data to your trustee or attorney that will be reviewed
by the court. Your information should be complete, accurate and honest.
Failure to do so may incur criminal prosecution, case dismissal or debt
discharge not being granted.
- Changing titles or moving assets – If you do this right before filing, it may look as if you are attempting
to hide assets. You may want to wait a certain period before filing.
- Running up new debt – Basically, if you rack up a ton of debt within 90 days of filing, it
may not get discharged. In this case, fraud would have to be proven by
the creditor. Meaning, maxing out creditors because you know you will
file bankruptcy could mean you would be liable in the end.
- Choosing to pay certain people or creditors over another – In some cases, a bankruptcy filing may undo a payment you made depending
on the circumstances.
- Hiding assets or failing to report an asset you anticipate on receiving
(will, trust, lawsuit settlement, etc.) – You can review your options with a Dallas / Fort Worth bankruptcy attorney
prior to filing to learn how to protect such assets legally.
- Not working with a lawyer – While there is no law requiring filers to have an attorney, working
with an experienced lawyer can make the difference in bankruptcy proceedings,
which are known for their complexities and for the weight they have on
one’s future. With guidance and counsel from seasoned legal professionals,
you can ensure you are taking the rights steps every step of the way.
Our Dallas / Fort Worth Bankruptcy lawyers our passionate about helping
clients secure a brighter financial future. If you have questions about
getting started or how we can help improve your particular situation,
contact us for a FREE financial empowerment session. Our lawyers are available to
help you explore your debt relief options – including
Chapter 7 and
Chapter 13 bankruptcy – as well as other ways to defend against
foreclosure or gain control of your finances.