Chapter 7 and Chapter 13 Bankruptcy Do’s and Don’ts

Knowing What to do with Regard to Chapter 7 and Chapter 13 Bankruptcy

In today’s extremely volatile and uncertain economy many people are discovering the benefits of bankruptcy. While there are indeed many options inclusive and exclusive to bankruptcy it is important to work with a trusted and knowledgeable legal professional to ensure you make the right choices. The Tucson-based law office of Kathryn L. Johnson, can help you make the right decisions with regard to this type of financial strategy. When considering bankruptcy there are a few things that should and should not be done.

A few things that should be done with regard to bankruptcy include the following:

1.Those entering into bankruptcy should always ensure that their answers and documentation are always true and correct.

2.Those seeking the financial protection that bankruptcy offers should maintain current payments on assets that they intend on keeping.

3. In addition, when filing bankruptcy it is sometimes necessary to raise additional cash. When this is indeed the case it is important to sell your assets at their fair market value.

Here are a few things that should not be done with regard to filing bankruptcy:

1. Refrain from using your credit cards at least 3 months before filing bankruptcy. Cash advances or transfers of balances on credit cards will typically send up a red flag and should be avoided.

2. Never attempt to transfer any assets to friends or family below fair market value.

3. Avoid using retirement accounts to pay off debts. Retirement accounts are generally exempt with regard to filing bankruptcy.

4. Avoid repaying personal debts prior to filing for bankruptcy. This is considered preferential payment and should be avoided.

5. Avoid paying over $600 to any particular creditor within 3 months of filing for bankruptcy.

In addition, consumers should also be cautious when hiring a certified bankruptcy document preparer. While this type of service can ultimately save money initially for a consumer, it can sometimes cost them more money in the long run. Because they are not actual attorneys they cannot offer any legal advice to those filing for bankruptcy. Ultimately taking this approach to bankruptcy can cost one their valued assets.

Hire a Respected and Dependable Attorney

Call the Law offices of Kathryn L. Johnson, where your bankruptcy will be handled in the most professional manner possible. Our company is a debt relief agency that assists people in filing for bankruptcy.