The Failure to Appear in Court Proceeding Is A Great Sin
While contemplating what to write about following on the subject of personal insolvency, I started thinking about conversations I’ve had with customers or prospective customers. Every client’s situation is unique but it would appear that lots of common problems keep arising. Below are common bankruptcy mistakes:
1. The ChargeCard run-up sin:
When Congress was contemplating what debts shouldn’t be permitted to be discharged, so they place this issue at the front of the line (really it had been second in line to a particular sort of taxation )! Consumer debts that are incurred for luxury goods or services more than $550.00 over 90 days before filing a bankruptcy petition are presumed to be nondischargeable. Additionally, if you obtain cash advances in an amount over $825.00 over 70 days before filing bankruptcy the debt incurred will be assumed to be nondischargeable.
There was a good reason Congress made the law what it is today. Think about the term equity. Can you think it is fair for someone to come to you to borrow money when they had no intention of paying you back? That is just what would happen if Congress let individuals discharge debt they incurred on the eve of filing bankruptcy. I don’t personally have some sympathy for the credit card companies but at precisely the same time, I am a proponent of laws being passed to prevent people from outright theft. Any fantastic bankruptcy attorney would recommend that you stop using your credit cards even if you’re thinking about filing bankruptcy. Odds are if you are reading this article you should probably stop using your charge cards. There are ways to resolve this problem if it’s already happened.
2. The repay a family member sin:
Here is your bottom line – as it has to do with repaying debts, so you can’t treat a family member better than you would any other creditor. An important point to know about this sin is the bankruptcy trustee may go to the relative and create the family member turn over to the trustee any amount you repaid the relative within a year of filing bankruptcy.
3. The liquidate/borrow against your retirement account in:
This sin doesn’t get you thrown in jail but remains a definite kick in the gut. Under pretty much every situation, your retirement accounts are usually protected and cannot be obtained from you. Before cashing an account that you have worked so difficult for and that you have planned on applying for retirement, consider filing for bankruptcy. It honestly tears at my soul to see people who have left after years of cashing/borrowing from retirement programs. Before stealing from yourself, seek help.
4. The line of credit/second mortgage to repay debt sin:
This sin is like the sin over. Normally, your homestead can’t be taken from you and is protected. Don’t borrow in an attempt to cover credit cards. All this can do is increase your monthly payment and reduce your equity. Your home is an investment that you ought to look at in the long term. Do not dismiss it on a short term fix which might not resolve the underlying problem. It can potentially put your house at risk in the future. Again, you can frequently file bankruptcy and not lose this valuable asset. Contact Chapter 7 Bankruptcy in Lynnwood here and get help asap.
5. The transferred property from your name sin:
Following the client figures out they can exempt just 1 automobile, the client has an epiphany and decides to transfer all but one vehicle from their title. They get a family member or a friend to take the name. The majority of the time they don’t receive any money for the vehicle and intend to move it back in their name. I really should charge some sort of further fee to customers that choose to make this mistake since it is such a kick in the gut once I have to stop everything from your case to help them undo what they’ve done. 1 consequence involves the insolvency trustee with all the money to pay creditors, taking them home, liquidating the home, and undoing the move of their home. The United States Trustee submitting a complaint is involved by the harsher consequence. It is never good when a branch of the United States Department of Justice files a federal lawsuit against someone. Taxed and Bankruptcy – The principle to remember with this sin is the fact that it is illegal to transfer land with the intent to hinder, delay, or defraud a creditor. By the way, don’t think for a second that every scheme imaginable has not been attempted. There are numerous easy and lawful techniques to deal with bankruptcy estate planning. Speak to an experienced bankruptcy lawyer before doing something you may regret.
6. The failure to appear in court proceeding sin:
Many of my customers found themselves being prosecuted until they filed for bankruptcy. A man does the trick that is ostrich and sticks their head in the sand. Not facing litigation can cause more issues. Problems may incorporate the garnishment of salary that could be uncomfortable and difficult. Further issues may include discovering that all the cash in your bank account has been imposed or”frozen.” This can lead to payments to electrical to bounce and cause you overdraft issues, and the creditors you want to cover the mortgage, such as your lease.
The biggest issue surrounding lawsuits may involve what the judgment itself means to your property. Judgments become liens on real estate. This implies that in case you have a judgment against you and have your home, your house has a lien on it. This lien can be removed or avoided but it’s an additional thing that requires some time and can be a substantial problem if you move to sell your home. Have a bankruptcy attorney do it for you if you’re uncomfortable dealing with the creditor or their attorney.
Another point to make is that even if you decide you will be filing bankruptcy, then you are not fully protected before the case is filed and collection activity can last. Until your bankruptcy case is filed, a collection case can last.
7. The failure to inform your attorney the Entire truth, the fact, and nothing but the facts in:
Bankruptcy lawyers do not have crystal balls and are consequently unable to see into the souls of humankind. In any area of the law, your attorney can only provide advice that is based upon information given by you. Failure to disclose transfers, debts, assets, income, or anything else may cause a loss of resources or denial of your bankruptcy situation. We do our very best to get to the bottom of the issues once we and our customers meet and my customers don’t lie. However, the consequences could be severe when it does occur. Intentionally lying can result in not just the loss of resources but can also lead to a denial of your bankruptcy case, fines, imprisonment, or even all the above.
The best course of action to avoid the seven deadly sins of bankruptcy is to look for legal advice regarding your debt and your rights before doing anything. If you’ve taken activities that you feel may cause difficulties as mentioned previously you ought to talk to an attorney to determine the best course of action.