We Help Clients Move On From Bankruptcy
Facing bankruptcy can be daunting. There are many common misconceptions out there about the process, and people often feel uninformed. At Minion & Sherman, bankruptcy law is a focus of our practice. We believe in guiding our clients through the process, easing their minds by answering questions and being available each step of the way.
Considering Bankruptcy? What To Do (And Not To Do).
Having helped many clients move on using bankruptcy as a tool, we have seen many mistakes. Read on to learn what we would say you must do, and what you must avoid doing.
DO: Be honest and report all your debt. It’s important to be extremely thorough and fully honest in the filing of bankruptcy. It can be tempting to underplay your debts, particularly if you are having an emotionally difficult time undergoing the process. However, this is an opportunity for a clean slate, and incorrect statements can delay your fresh start.
DO: Keep making payments on property you want to keep, like your car or your home. In bankruptcy, you generally do not get to discharge a debt for a specific item like a car loan and keep the item, in this case the car. You need to keep making payments if you want to keep it.
DON’T: Run up your credit card bill prior to filing. Bankruptcy is an excellent tool, but you must act in good faith to use it. If the court sees that you are being dishonest by running up debts when you know you’ll be filing for bankruptcy, they will hold you accountable.
DON’T: Take money out of your 401(k). Removing money from accounts like retirement accounts can incur taxes and other fees that you will then be responsible for paying.
DON’T: Hide assets or transfer them to other people to try to preserve them. Hiding your property when you are undergoing bankruptcy is a type of fraud. Like with the credit card bill, you should not act in bad faith by transferring your assets.
Financial issues can be incredibly difficult. With the help of a good attorney, you can face the process with confidence, knowing that you are doing what’s best for you and your family.
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We are a debt relief agency. We help people file for bankruptcy under the Bankruptcy Code.