Chapter 7 and Chapter 13 Bankruptcy Do's and Don'ts
Due to your financial stress caused by mounting debts, you may be considering filing for Chapter 7 or Chapter 13 bankruptcy protection. Or you just may be just curious about one of the alternatives to bankruptcy.
The Law Office of Kathryn L. Johnson, PLC in Tucson is here to help you answer questions you have about bankruptcy and other legal options available to deal with financial challenges. She is here to answer your questions, whether you are in Arizona or California.
What to Do
Besides hiring an experienced attorney to represent your interests, you should:
- Sell assets for fair market value if you need to raise cash
- Stay current on your mortgage and car payments if you intend to keep them
- Mark sure you are honest with your bankruptcy attorney when identifying your assets and income.
- If you don't you could jeopardize your discharge and potentially face bankruptcy fraud charges.
What to Avoid
Besides refusing to listen to your attorney's advice, here are some other things to avoid:
- Avoid using a credit card for at least 90 days before filing bankruptcy, especially for cash advances or balance transfers. These debts may not be dischargeable.
- Don't pay more than $600 to any one creditor to pay down debt within 90 days of filing.
- Don't transfer assets to others for less than fair market value.
- Don't re-pay friends or family members before filing. You cannot treat them preferentially over your other creditors.
- Don't borrow from your 401k to pay bills. Your 401k is an exempt asset you are entitled to keep if you file bankruptcy.
You can benefit from the insightful guidance of an experienced attorney. Contact the Tucson Law Office of Kathryn L. Johnson, PLC today and arrange your free initial consultation.
Hire an Attorney Who You Can Trust
Call 520-743-2257 or 888-326-7304 and ask about the convenient payment plan for retaining Kathy Johnson as your lawyer.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
