Consider These Factors Ahead of the Bankruptcy Filing

  • Bankrupt Man

Factors to Consider Ahead of the Bankruptcy Filing

Filing of bankruptcy can be an immediate decision. However, remember that there are certain factors to be seriously considered if you are determined to file for personal bankruptcy. Whether it is to be believed or not, these below actions by the debtors just ahead of the procedure of bankruptcy filing can invite a lot of scrutiny from the bankruptcy trustee who will be assigned to the filed petition. Let’s see what can cause the debtors trouble –

  1. Taking a cash advance while you are amidst financial crisis and on the verge of filing bankruptcy can land you into trouble. This act might be treated as fraudulent activity and will invite more investigation once the case will be reviewed. In most cases, a significant portion of this cash advance needs to be paid back once the debtor files for bankruptcy
  2. If you are paying off a family member when you are about to file bankruptcy can be investigated too. Because you owe them money, it makes them equal to any other creditor in your bankruptcy case. Paying them off during the time of bankruptcy case will also not be permitted
  3. Don’t retitle or transfer assets when you are thinking about bankruptcy. It will be treated as an attempt to protect your assets from liquidation, especially in a Chapter 7 bankruptcy. It could have the counter effect leading to the bankruptcy trustee taking possession of it. Debtors should ideally consider other ways of protecting their assets instead of trying to transfer them to others.

A proper plan is always needed in the midst of challenging times of financial crisis and if you are considering a bankruptcy filing. Work with experienced attorneys at Recovery Law Group, who can explain the laws that govern your states and warn you about actions that could cause you trouble. They can also guide you with the processes to appropriately protect your asset. Seek an appointment with them over the phone (Dial-in: 888-297-6203). An experienced bank attorney, either from their offices in Los Angeles or from Dallas, will clarify all your queries just ahead of your bankruptcy filing.