New here? Start with these articles to learn about US bankruptcy, debtor bankruptcy
alternatives like debt consolidation, debt settlement, debt negotiation, and debt management.
You'll also learn the causes of debts that can lead you to file bankruptcy and how to recover
from it.Be Truthful With Your Washington DC Bankruptcy Attorney
Truthfulness is essential for a successful Washington DC bankruptcy attorney and client. The new reforms enacted by Congress in 2005, bankruptcies are more difficult to qualify for, most expensive and harder to find legal representation for. One of many reasons Congress believe reforms were needed to the US Bankruptcy Code was long suspected abuse of the system by filers and attorneys. As a result, tighter restrictions were placed on both debtors and their attorneys to assure that the information contained in the bankruptcy petition was an accurate as possible.
Pressure on attorneys aside, failing to be up front with all your information can make things worse for you as well. Here are some guidelines on information truthfulness for a smooth Washington DC bankruptcy attorney client relationship:
Don’t exclude creditors. Perhaps one of your creditors has been particularly kind to you during your ordeal or perhaps you know them personally and you are tempted to exclude them from your list of creditors and attempt to pay them off privately at a later date. This almost always never works and prevents you from achieving the relief that bankruptcy will ultimately afford you. Plus, if you omit certain creditors and the trustee becomes aware of this, you will have to add these creditors in and that can raise suspicions about the rest of your information.
Include any money or assets due you. When you list property and income in your filing package, be sure to list any assets or income due you, but not yet received. Some examples are:
– A recent inheritance.
– Royalties
– Stock options, tax refunds or monies from trust funds
– Structured settlements
– Pensions or retirement funds
You may claim some of this as exempt and keep it, but it must be listed so the court will have a clear picture of your assets.
List all creditors. Omitting creditors from your list defeats the purpose of going through the bankruptcy process. You receive no relief from these debts and your creditor is still in limbo. If a creditor claims you owe them money and you think you do not, list them anyway and term them “disputed.” If a debt is already being contested in a lawsuit, you may list them as “contingent” based on the outcome of the lawsuit. At the end of the bankruptcy process, you will no longer owe any of these debts, including the ones that are contested, and the dispute will be irrelevant.
Don’t try to hide property or other assets. This will surely come back to haunt you. When you sign your prepared bankruptcy papers, you declare that all information in them is correct to the best of your knowledge and you will be held to the truthfulness of them under penalty of perjury. Intentionally filing incomplete or incorrect information can lead to your case being dismissed or your being charged with perjury. Honest mistakes are expected and can be corrected with a reasonable explanation to the trustee.
Trying to defraud creditors. C’mon now. Aren’t you in enough trouble? The role of the bankruptcy court is to act as a neutral party between you and your creditors to settle outstanding debts. The trustee is charged with the responsibility of fairness to both you and your creditors. Attempts on your part to untruthfully state your position or to deny these creditors what they are legally due can result in deepening the severity of your situation. Some examples of actions sure to raise red flags with the trustee are:
– Transferring assets to family or friends in an obvious attempt to hide their existence.
– Maxing out credit cards just before filing for bankruptcy, especially if the purchases are for luxury items.
– Concealing property
– Concealing debts
– Lying about income or monies and property due you.
A Washington DC bankruptcy attorney can answer further questions about your filing.
About the Author:
When faced with overwhelming debt and the possibility of bankruptcy, a Washington DC bankruptcy attorney can offer advice and help get your financial situation back under control.
Nick Messe | Bankruptcy Basics |
Tags: bankruptcy attorney, bankruptcy process
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