The 7 Deadliest Mistakes that Would Damage Your Bankruptcy Filing
According to court records,1.4 million bankruptcies were filed in the U.S. last year. Of those, the vast majority are consumer bankruptcy filings.
1. Purchasing luxury items or maxing out your credit cards before filing may signal to the bankruptcy trustee that you had an intent to defraud your creditors.
2. Transferring or selling your valuables to friends or family to protect them from creditors will likely result in a lawsuit for fraudulent transfer in which the trustee sues the recipient to reclaim the valuables for the benefit of all creditors.
3. Incurring more debt on the eve of filing may be grounds for a finding of fraud and may cause you to fail the “means test.”
4. Paying back loans from friends or family would be considered a “preference,” and the trustee will likely pursue return of the funds.
5. Neglecting to list all creditors on the petition for bankruptcy would cause debt which is not listed on the petition not to be discharged.
6. Withdrawing money out of your retirement accounts before filing for bankruptcy is wasteful because such accounts are usually exempt and can be kept after bankruptcy. Also, there are usually severe tax consequences to such withdrawals, and taxes are not dischargeable in bankruptcy.
7. Taking out a second mortgage to pay debts is not a good idea since a mortgage cannot be discharged in bankruptcy and will remain a lien on the home.
Debt Modification
Today's tough economy is leaving more and more people with massive debt. Credit card debt, mortgages, car payments, personal loans and other debts are putting many in a situation with seemingly no way out.
At The Law Offices of Boris Kogan & Associates, we offer clients a variety of debt relief and negotiation options. We understand that every client has a unique financial situation, so we tailor our services to meet their individual needs. Some of the ways we can help are:
- Debt negotiation - Many individuals and businesses find debt relief through negotiation. We help by negotiating with creditors on clients' behalf and examining all available options.
- Debt assessment - Oftentimes, an individual simply needs to assess his or her debt to identify a plan of action. We work with clients on a case-by-case basis to identify solutions to their individual debt problems.
- Bankruptcy - If bankruptcy is determined to be your best option, we can refer you to a bankruptcy specialist.
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Are you a business owner facing financial difficulties? Making the decision to close a business is not easy. We can help you determine your best options for keeping your business, or closing it, if it is in your best interest. We also specialize in examining personal guarantees, and lease provisions including "good-guy" clauses, to determine your personal liability or possible exposure. With 30 years of experience, we are skilled in handling these matters.
Mortgage Modification
For many people, their house is the most significant financial investment they will make during their lifetime. So, when they are on the brink of losing that investment through a mortgage foreclosure, they need an attorney who can take quick and aggressive action to protect their assets and save their home.
If you are facing mortgage foreclosure, we work diligently to get the best results for you. Working closely with you and the lending sources that we are in touch with, we often go above and beyond to provide the highest caliber legal work possible. We negotiate with your mortgage lender and with their foreclosure lawyers. We take action to prevent or slow down mortgage foreclosure proceedings. We also help refer clients to reputable funding sources with whom we are familiar for help. So, when you work with the Law Office of Boris Kogan & Associates, you work with a small firm that provides extraordinary service
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