Many problems can prevent you from filing a successful bankruptcy, says bankruptcy attorney Benjamin Ginter, who runs the Law Offices of Benjamin J. Ginter in Cranford, New Jersey. Here, he discusses the pitfalls which may make you have second thoughts about filing.
Many people think that filing for bankruptcy will solve a lot of problems. For the majority of people, that conclusion is correct. But some pitfalls may prevent you from filing a successful bankruptcy, so it’s good to be aware of what they are before you file - or even begin thinking about filing.
Problems can include:
- You took large cash advances right before you decided to file.
- You wrapped up a lot of debt right before you decide to file, such you went on an expensive vacation right before filing.
- Your behavior immediately before you filed. For example, if you owned real estate and transferred your name out of the property right before you filed, that could be problematic.
- You have a personal injury lawsuit where you may be getting a lot of money. That could be something you would want to be careful about. That could become part of the bankruptcy estate, and they could be interested in those proceeds and eventually take them from you.
Before you file, it also pays to know what type of assets you have and if they could be exempt. You want to avoid pitfalls, and you want to know what property could be subjected to the trustee actually taking it and selling it.
Again, this is where it’s vital to have a qualified and experienced bankruptcy attorney guide you through the process and make sure you do things correctly. A lawyer can help lead you through the intricacies of the process and help you avoid the pitfalls which may make your bankruptcy unsuccessful.
