LaBankruptcy is an extremely helpful and useful tool, giving the debtor many powers and abilities not otherwise available. But it also comes with responsibilities and limits that are important to be aware of.
Here are 3 Pre-Bankruptcy No-no’s that you should be aware of, especially as these are common bankruptcy mistakes:
1. Providing misleading or inaccurate information about your income. The whole basis for the bankruptcy process working effectively starts with accurate disclosure of a debtor’s income. That’s why the bankruptcy court cares so much about honest disclosure of income. Be honest and up front with your lawyer, and do the same with your bankruptcy filing. Only by doing this can your bankruptcy lawyer truly maximize the protection you receive. Failure to do this will cause suspicion by the bankruptcy judge and the creditors and could doom your bankruptcy case before it gets too far.
2. Large cash expenditure or incurring of debt right before filing. If you take a lot of money out of your account, make a big purchase or run up a sizeable credit card balance right before you file, a bankruptcy judge will be suspicious. And with good reason. It’s understood that their are ordinary and daily expenditures and charges that a person needs to make. However, anything out of the norm will raise red flags and could be a problem for you. If you do need to make a big expenditure in that situation, be prepared to explain it.
3. Transfers of assets to friends and relatives. There’s a 90-day look-back period pre-bankruptcy where transfer of real estate or assets to other people or organizations will raise red flags. Also, any such transfers made to any relatives or friends in the previous year will also raise red flags. Even though these might have been executed well before the debtor even thought about filing for bankruptcy, the transactions can still be reversed.
So when you talk to your Las Vegas bankruptcy lawyer before filing, make sure to mention anything in any of the above categories. This will enable your bankruptcy lawyer to best help you and maximize protection for your assets.
If you do not currently have a Las Vegas bankruptcy attorney, you can call 702-745-8088 to set up and appointment with Freedom Law Firm or see our website for more information on:
- Las Vegas Chapter 7 Bankruptcy
- Las Vegas Chapter 13 Bankruptcy
- Las Vegas Home Foreclosures
- Las Vegas Loan Modifications
- Las Vegas Short Sales
- Las Vegas Foreclosure Mediation