Charlotte, North Carolina
1001 East Blvd., Ste C
Charlotte, NC 28203
704-342-2876

The Do's & Don'ts of Filing for Chapter 7 Bankruptcy May 2, 2019

Charlotte, Mecklenburg
The Do's & Don'ts of Filing for Chapter 7 Bankruptcy, Charlotte, North Carolina

If you’re finding it increasingly difficult to keep up with your debts, Chapter 7 bankruptcy may provide a way out, allowing you to discharge most accounts and start your financial life over again. However, it’s a complex legal process with potential pitfalls that could leave you responsible for some debts or cause your case to be dismissed entirely. Below are a few steps to take and common mistakes to avoid if you’re considering filing.

Do:

Claim all your exemptions.

While the trustee may seize some of your assets in exchange for discharging your debts, each state allows you to exempt a wide range of assets. In fact, many Chapter 7 filers can get the debt relief they need without surrendering any property at all.

Time your filing correctly.

bankruptcyIf you’re expecting a tax refund, an inheritance, or a bonus from work, the trustee could seize those funds even after the bankruptcy has cleared. In general, it’s best to wait until you’ve received and used that money to support your family to file your petition.

Don’t:

Make major purchases.

When you file your petition, the trustee will look back over your finances for the previous 90 days. Major purchases, especially if you used a credit card, can trigger suspicions of fraud and complicate your case. In some instances, the trustee may exempt those purchases.

Transfer money or assets.

Many borrowers try to conceal assets from the trustee by transferring title to a friend or family member. Or you may decide to give away a valuable belonging if you believe you’ll lose it in the bankruptcy. However, the trustee has the power to unwind those transactions and seize those assets, so it’s best to avoid transferring any assets before filing.

 

Filing for bankruptcy protection can be a complex, confusing process, but an attorney can guide you through the system, maximizing your benefits and helping you avoid common mistakes. The Law Office of J. Baron Groshon has nearly 30 years of experience helping distressed borrowers throughout Charlotte, Concord, Gastonia, and Lake Norman, NC, get the debt relief they desperately need. Visit their website for more on their Chapter 7 bankruptcy services, follow them on Facebook for tips and updates, or call (704) 342-2876 to speak with a lawyer and schedule a consultation.

Other Announcements, Events and Deals from The Law Office of J. Baron Groshon
4 FAQ About Living Trusts, Charlotte, North Carolina
Living trusts are an estate planning vehicle for distributing assets to beneficiaries. While not everyone needs to create such arrangements, many families can benefit from doing so. ...read more
5 FAQ About Living Wills, Charlotte, North Carolina
Life is unpredictable, so it’s prudent to be prepared for anything. That’s the purpose behind a living will. If you don’t already have one, consider creating one with an ex...read more
What's the Difference Between Insolvency & Bankruptcy?, Charlotte, North Carolina
If you’re struggling to manage debts, you’re likely searching for a solution. During the search, the terms insolvency and bankruptcy will probably come up. At first gl...read more
3 Tips for Beginning a Conversation About Legal Guardianship, Charlotte, North Carolina
Planning for the future with legal wills and estates is the responsible thing to do for your family. Though it can be challenging, this is also the right time to begin thin...read more
A Guide to Intestate Succession in North Carolina, Charlotte, North Carolina
When you create a will, you give yourself control of the future by determining what happens to your assets when you pass on. If you don't meet with an estate planning attorney t...read more