The Inner Workings of a Law Firm

The Inner Workings of a Law Firm

Avoid These Tricky Problems When You File Chapter 7

by Jo Rodriquez

Many consumers are forced to admit that their financial situation is beyond their control. You may never be able to pay off your debts because of interest, penalties, fees, and more. Additionally, you may be facing dire punitive actions from creditors that can threaten your job, your home, your vehicle, and more. When the only action that makes sense is to file chapter 7 bankruptcy, it pays to make the process as smooth and worry-free as possible. Read on and avoid a few tricky problems when you file.

Hiding Assets

With chapter 7, it's possible, but rare, to lose personal property when you file chapter 7. What filers should avoid, however, is failing to list all their assets when they file. Your bankruptcy attorney can provide you with some valuable advice about your chances of surrendering property. They can help you avoid losing property the legal way. Trustees have access to several government databases that provide information on financial transactions. If you are found to be purposely hiding assets, your case can be dismissed with prejudice which will prevent you from receiving the relief you need for some time.

List Those Creditors 

The whole idea of bankruptcy is to have debts dismissed. However, creditors not listed on your bankruptcy paperwork won't be included in the dismissal. Filers are required to list everyone they owe money to, even personal loans from friends and debts you don't want to make known. That is because the trustee wants to prevent you from "favoring" one creditor over others. To make sure you don't leave out a creditor, obtain a credit report for reference.

Using Credit Cards with Abandon

It occurs to nearly everyone considering a chapter 7 bankruptcy but that doesn't mean you should act on that thought. Using credit cards in the weeks before you file chapter 7 can get you in trouble with the creditors. You may use the cards only if you need to for food, bills, car repairs, and other important reasons. However, a trip to Disney and other frivolous charges could be denied and delay your bankruptcy process.

Thinking You Can Do It Yourself

Anyone can file bankruptcy by filling out a few forms so why not do it yourself? However, there are many lengthy and confusing forms that you would need to fill out in the process. Lawyers are educated and experienced with these which can help you save time when you hire them to do the work for you. You won't necessarily be saving any money by doing it all by yourself when the bankruptcy trustee dismisses your case because of errors. The filing fee is nonrefundable so get a lawyer to help you with the paperwork, deal with issues that arise, and be there for you at the creditor's meeting.

To learn more, get in touch with a firm like McManus & Associates.


About Me

The Inner Workings of a Law Firm

We all know that lawyers are professionals who help people interpret and work with the law, but do you know how a law firm works from the inside out? I am a professional paralegal, and I have worked in both large and small law firms during my career. I can tell you that a successful law firm needs more than just lawyers to keep it running smoothly, and sometimes things can get really crazy! Take a tour through a law firm in my blog, and find out what really goes on behind the scenes of an active and successful law firm.