3 Things to Know Before Filing Bankruptcy

If you are considering filing for bankruptcy, a million questions are presumably racing through your head. Bankruptcy in itself can be complicated and difficult to understand, and searching the web for answers often only leads to more confusion. Here are three important pieces of information to understand before filing.

Do Not Move Assets

Providing information on all of the assets you own can be scary, and that’s why many individuals who file for bankruptcy hastily decide to move or hide some of their assets. If you move your assets, there is a possibility that you will be:

1) denied a discharge

2) subject to criminal penalties

Be as Transparent as Possible

When you file for bankruptcy, you are required to provide complete and accurate information regarding your assets, debt, income, expenses, and financial history. If you knowingly misrepresent your information, you can be fined up to $250,000, twenty years in prison, or both. A bankruptcy lawyer will help you all the necessary paperwork and avoid having the court dismiss your case or require you to file additional paperwork (which can include more fees).

If Sued, Act Now

It is in your best interest to file for bankruptcy quickly if you have been sued by a creditor. This is because once a creditor is awarded a court-ordered money sum, the lien rights that come with that money will allow the creditor to garnish your wages, attach your bank accounts, repossess your car, and foreclose on your house. If you file for bankruptcy before the creditor wins the case, you’ll be able to stop the pending lawsuit and eliminate the debt.

It’s highly recommended that you contact a bankruptcy lawyer before filing. The Law Office of Larry Karandreas offers expert, free consultations with sympathy and understanding you cannot find elsewhere. Contact us today.

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