There are very strict laws and regulations surrounding the bankruptcy process. There are also just as many myths and a massive amount of misinformation surrounding them. Anyone in Florida who is considering filing for Chapter 7 bankruptcy may benefit from knowing what not to do as much as understanding what a person should do when filing a petition.
One important piece of advice for someone who is about to file for bankruptcy is to not go out and rack up more debt. Your spending habits will be analyzed, and if you run up new debt after having started the process, this action can be seen as fraudulent activity. These actions can even lead to a bankruptcy case being tossed out of court and debts remaining as they are.
Some people believe that they can give away or sell off belongings cheaply as a way to avoid losing assets through bankruptcy. This also can be seen as fraudulent. The trustee appointed by the court to oversee the bankruptcy case should be made aware of any transfer of assets to prevent the case being jeopardized. Your legal counsel should also be aware of any plans to sell or transfer anything that may be considered part of the estate.
When it comes making arrangements for assets before or during a Chapter 7 bankruptcy filing, it is always advisable to be safe rather than sorry. This means seeking out legal advice and carefully detailing assets and debts. Our firm’s website can provide bankruptcy advice that may be useful to Florida residents who want to start planning a return to stable financial footing.
Source: urichlaw.com, “Florida Bankruptcy Advice Lawyer“, , Sept. 22, 2014