While bankruptcy doesn’t initially seem like the topic that would involve “tips, just like any other section of the law, there are certain pitfalls that could have unintended consequences. Today we’ll look at how you can avoid these by following a few pointers when deciding to declare bankruptcy. Let’s review these Houston Texas Bankruptcy Tips:
Pull your Credit Report
In order to know where you are going, you have to know where you’re at currently. If you are considering bankruptcy but haven’t done a thorough examination of your finances, it’s time to take a step back and examine them under a microscope closely. Also, you’ll need to paint a 100% accurate picture for the bankruptcy courts, trustee, and your Houston bankruptcy attorney.
Put the Credit Card Down
Before filing bankruptcy, some people have tried to run up the full balance on their credit card, expecting the debt to be wiped away and this simply does not work. Your creditors can deny a discharge of any purchases made for items deemed “luxury” goods exceeding the value of $600.
Don’t pay back family member within 12 months of filing
Because bankruptcy laws treat all creditors the same and place them on an even playing field, you must do so also. If you pay a family member back a personal loan within a year, not only does it looks like you are favoring them over your other creditors, but the trustee assigned to your case may be able to recover the money.
Don’t transfer property within 4 years of filing
This includes homes, vehicles, and other big ticket items. Many people believe that they can do so, and keep their property safe from bankruptcy in this manner. This is not the way to go about it. Don’t transfer anything unless your bankruptcy lawyer gives you the okay. If you have already done so and file bankruptcy, the trustee assigned to your case can go back and take back possession, which could exacerbate your legal troubles.
Get a Bankruptcy Attorney
Warrant Buffet once said “risk comes from not knowing what you’re doing” and it couldn’t hold truer when it comes to filing bankruptcy. Because filing for bankruptcy in Texas has long lasting financial and lifestyle implications, it’s strongly recommend you hire a bankruptcy attorney. If you think it’s too expenses thing again: many bankruptcy lawyers in Houston will not only be willing to show you how to wave some of the bankruptcy fees, but also allow you to pay your legal fees in manageable installments. You are MUCH more likely to have your Houston bankruptcy dismissed if you go alone, which could cost extra money in the long run anyways.