Bankruptcy is a bad omen because it takes away all your assets and affects your credit. However, sometimes, filing for bankruptcy, helps people to start fresh by clearing or adjusting all debts. There are also situations when people might not be granted bankruptcy petition.
Bankruptcy attorney helps in gathering all documents and arrange a report or statement that helps in filing for bankruptcy. Slight mistake can deny your petition. This means, you’ll be back paying all debts.
Mentioned below are certain tips that help in avoiding mistakes while filing bankruptcy –
- Don’t pay friends or family members after or before bankruptcy filing, because the trustee will then pressurize them to repay that money, which will be further distributed to other creditors. People often think of repaying friends and family first, but that will only spoil relations.
- The bankruptcy petition can be denied if you incur more debt within 90 days of bankruptcy filing. This means using credit card again after making small payment or taking small loan, etc.
- During bankruptcy repayments, retirement accounts are protected. If you use retirement account for repaying certain debts, the court can reject your bankruptcy petitions.
- Don’t think of transferring certain properties on another person’s name during the process of bankruptcy, because trustee can still retrieve it from them considering the fact that it was under your name few days back.
The biggest mistake that most debtors do, is not seeking help from bankruptcy lawyers. They have been in this field for years and therefore know more ways of getting out from these problems. There are many legal terms and procedures which we’re unaware of. They are the right people to show direction.
Denbigh Law firm is into this field since 1982. They not only deal with bankruptcy, but divorce child support and custody, criminal and traffic, adoption, wills, and personal injury. Their office is located in Yorktown, but they provide services in Williamsburg, Hampton, Newport News, and Poquoson, Virginia. Thus, if you’re looking for bankruptcy attorney Williamsburg Virginia, you’re a right place. They might charge consultation fees, but their analysis is never misleading.
Bankruptcy is a threat to human life as it not only hampers the person who’s in debt, but also all others associated with them. A family is destroyed, employees become jobless, and market reputation is damaged. Bankruptcy may help a person to start fresh, but it takes a lot of effort and confidence to get back on feet.