Common Pitfalls to Avoid When Filing Bankruptcy

In my experience, no one is content at the possibility of experiencing a bankruptcy. To help delay the inevitable, many clients that end up severely in debt turn to extreme measures. Trust me, I understand the desperation that may cause serious mistakes.

Among the most common personal bankruptcy problems is cashing in a retirement account. If you’re convinced that this might provide a means to fix your tremendous debt, reconsider. Before you decide to mortgage your long-term security to pay for today’s credit card bills, get in touch with a good attorney that offers a for a free consultation. Most do, and if they don’t, keep looking!

Safeguard Your Retirement in Bankruptcy

safeguard your money

There are many bankruptcy attorneys that can help you get out from under crushing debt without having to cash in your future security. Many of my former clients never realized I could have help protect this money they had set aside their entire lives.

Should you require quick relief from severe debt and financial institution harassment and you wish to safeguard your security by keeping your retirement funds, contact an attorney immediately to schedule a consultation.

Steer Clear of Debt Management

Many individuals use debt management companies to assist them in getting out from under debt. These businesses concoct a debt management plan together with you as well as your creditors to settle your debts based on an established repayment schedule. Regrettably, many of these businesses will swindle you by collecting your money, proclaiming they will pay your debts, after which they pay absolutely nothing to your creditors. This leaves you in a worsened financial position.

If you are considering using a debt management company to make a plan to pay your lenders, you need to understand how you can protect yourself. You will find companies available that will trick you and help make your financial situation a whole lot worse. Whenever using a debt management company, ensure your creditor agrees with suggested payment schedule. It’s also wise to work with an expert attorney to examine your monthly statements to make sure that the debt management company is satisfying its obligations to you.

 Stay Away From Fraudulent Money Transfers

It might appear attractive to move your money to a different individual to avoid a bankruptcy trustee from getting to them. This happens to be an error since there are now a number of laws and regulations which prohibit certain kinds of transfers. A transfer could be regarded as deceptive if an individual actually intended to deceive a creditor, or perhaps in exchange for the transfer, an individual received less than a reasonable comparable value and now is not able to pay debts. A transfer can also be viewed as fraudulent if an asset was sent to another creditor to repay a past debt during a period when that creditor ought to have known that individual was undergoing bankruptcy.

You will find defenses against accusations of fraudulent asset transfers created by creditors. You will need to speak to a skilled bankruptcy lawyer to know the way to defend yourself against these kinds of things. A few of the defenses that could apply to your circumstances are that you acted in good conscience when making the transfer, or how the transfer was carried out in the ordinary span of business.

 Look out for Credit Repair Ripoffs

credit repair ripoff

I was the on the board of an organization that fought to protect consumers from predatory and misleading business practices.You have to look for people that are on your side. The credit card companies and banking institutions are not those people. Seek out advice from qualified individuals and you will be in good hands.

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