Mistakes done by people when filing a bankruptcy case

When a person is unable to pay his debt back to his creditors he goes through a procedure which called bankruptcy. It is a legal process, through which the person gets himself discharged from dept, and he can keep his property and his creditors lost their right for getting back their money, and cannot file charge against him.

Sometime people make huge mistake when they file a bankruptcy case unintentionally and their chance of getting discharge from the debt can get in danger. They can lose their property by those small mistakes.

Some time people try to transfer their property onto another name after filling the case to save it from losing but this strategy does not work with a bankruptcy case it is important to give the details of last transferred property and the bankruptcy court can stop the transfer. Or consider it illegal. The person will come back to the same position as before. It is important for you to transfer the property before you file the case.

There is no way to pay the debt to choose creditor before the case filling. The trustees will want the list of all the family members to whom you owe the credit. If you try to pay the loan to any relative trustee can pursue them for a portion of you paid debt. If there will not be any one to object the debt will be eliminated.  

It is a bad trick if someone tries to transfer all the money from debt credit card to another one. The creditor can claim it a fraud if it will be done right before filing the case. And the credit will come on the new credit card.

It is important to put all the debt on the petition even if you want to keep some of them. If someone wants to keep the debt of house or car you will have to sign a reaffirmation agreement with the court.

If you have taken your retirement money as a loan it will not be safe from your creditors but if haven’t taking it as loan, it is safe and will be yours before or after the case

Some people don’t know how to react when they get a mail from lawsuit. If you have already filed a case your lawyer should send all the detail to your creditor’s attorney and the case will be discharged, if you get the summon, when you are thinking to file the case and haven’t done it yet you can get a permission from the chosen court.

It is important to give all the required detail to the hired attorney so he can help you better to save your assets. Some people wait for too long for filing a case. That way they will lose their property which has already been taken by the creditors. The bank will forbid you creditors from taking any debt recovery action against you as soon as you have filed the case so do not wait for too long.

It is also important to hire an experienced attorney for your case. A good one will know the right and wrongs and will be able to guide you accordingly.