Filing for bankruptcy in Las Vegas is a very powerful tool that American citizens have for getting a handle on out-of-control debts. While bankruptcy can be very helpful, it’s also important to be aware of actions before the bankruptcy filing that can affect the outcome of your case.
So here are 5 Things to Think About Before Filing Personal Bankruptcy in Las Vegas. (Be mindful of these now and you’ll be a lot happier down the road.)
1. Timing of tax return and bankruptcy filing: Once you file your taxes, your tax refund is considered an asset, even if you haven’t received yet. So depending on whether you’re anticipating a refund and the size of it, and depending on your own circumstances, there are situations where it may make sense to wait before filing for bankruptcy.
2. Loans and accounts with the same bank: Let’s say you have a car loan from the same bank where you have your checking or savings account. You might think that your accounts are all separate and therefore safe. But depending on the contract language for the loan, the bank may have the right to dip into your checking or savings account to pay for the loan if you’re defaulting. This is something to be aware of and to make sure to raise with your bankruptcy attorney if you’re considering filing.
3. Accounts Receivable: This means any money that is owed to you. Whether by a business or a friend or relative. It doesn’t matter. There are situations where strategically it may make sense to collect the account receivable first before filing for bankruptcy, even if that means putting off your filing a bit longer. This is something to definitely discuss with an experienced Las Vegas bankruptcy attorney who can advise on pre-bankruptcy planning as well as the law itself.
4. Favoring friends and family: While you might feel particularly obligated to repay the loan to your brother before you pay off your credit card, in the eyes of the bankruptcy process that’s a no-no. You can’t “prefer” one creditor over the other. If you repay someone within 90 days of your bankruptcy filing, that payment can be undone. The bankruptcy process is set up to treat all creditors the same. So that payment you made can be taken away from your brother and added to the bankruptcy estate to be distributed equally among creditors. Again, another key issue to raise with and disclose to your bankruptcy attorney if applicable.
For a free Las Vegas bankruptcy consultation contact the attorneys at Freedom Law Firm by calling 702-745-8584.com.
5. Taking on more debt. Don’t go out and get a new credit card or take out a car loan right before you file. You won’t be able to wipe those debts away after you file, because such actions will be presumed to be in bad faith by the bankruptcy court. They put your discharge at risk, and you’ll still be on the hook to pay them back after your case is completed.
If you have more questions about what not to do before filing for bankruptcy in Las Vegas, please contact an experienced Freedom Law Firm bankruptcy attorney for a free initial consultation.