Bankruptcy is not a pleasant option for anyone, and the negative impact of a bankruptcy can scare many into making mistakes that end up costing more over time. With a little preparation, however, you can ensure that your bankruptcy process goes as smoothly as possible.
A very common pitfall that many either commit or at least consider, is liquidating retirement assets. While cashing in an IRA, 401K or other types of retirement seems like an easy fix for a current economic problem, it is a big mistake. This only serves to take away the debtor’s hard earned security for tomorrow.
Your Retirement Funds Can Be Protected in Bankruptcy.
Working bankruptcy attorneys, you will understand how it is possible to get out from under the heavy pressure of debt without risking your financial future. Often, clients do not even realize that this is a possibility. Secure swift relief from debt and creditors. Protect the future that you have built for yourself and your family by working with a bankruptcy lawyer in New York.
Stay Away From Debt Management (Without an Attorney’s Help).
It is a common mistake to turn to debt management companies for relief. Consumer debt can be hard to manage, and debt management companies may seem like an easy way out. Unfortunately, many of these companies are just in it for a quick dollar, and not your best interests. Many of these companies present you with a debt structure, collect your money and never follow through with paying your creditors. You end off worse than you started.
An experienced bankruptcy attorney can help you if you decide to go with a debt management company. Allow a knowledgeable attorney to work with both the debt management firm and your creditors to make sure that they actually follow through with the structured plan. Protect yourself from unscrupulous people and hire someone that has your best interests at heart.
A Fraudulent Transfer of Assets Is Asking for Trouble.
While transferring your assets to another individual may seem like a great way to “hide” your property from a bankruptcy trustee, this is a mistake. Laws have been established to curb this practice by making certain transfers illegal. Fraudulent asset transfer occurs when a debtor does so to defraud his or her creditor. Selling your asset for less than it is worth to a friend is also fraud. An experienced attorney will let you know what constitutes fraud and keep you on the right side of the law.
If a transfer is called into question, a qualified attorney will help you with your defense against the accusation. There are times when transfers are legitimate and a good lawyer will properly defend your right to do so. Applicable defenses include those transfers made in good faith or those made during the course of normal business procedures.
Credit Repair Scams Are Rampant.
Many legal counselors and attorneys will protect consumers against credit repair scams. We are constantly on the watch for predatory or deceptive practices made by credit card companies, credit repair businesses, banks and mortgages.