Southwest Florida Attorney Provides Information on What to Avoid When Considering Bankruptcy
Southwest Florida Attorney Provides Information on What to Avoid When Considering Bankruptcy
Naples, FL (PRWEB) August 04, 2011
There are actions that individuals should avoid if they are considering, or planning to seek bankruptcy debt relief from the courts, according to W. Justin Cottrell, PA, a Florida bankruptcy attorney.
“I call them the ‘Top Three Don’ts’,” said Cottrell. “Since filing is a legal process, of course they DO need to talk to a lawyer. But their path to debt relief can be smoother if they don’t do certain things leading up to filing.”
1) Cottrell says people planning to file for bankruptcy must not use credit cards. “The temptation may be to run up a big bill on your credit cards in advance of filing bankruptcy. It may even seem tempting to take out credit card cash advances. People think that this debt will be automatically forgiven. It is more complicated than that. If you want the court to look favorably on a petition for debt relief, then you don’t want them seeing a recent run up on credit cards.”
2) Don’t attempt a short sale of your home if you are planning Chapter 7 bankruptcy filing. Cottrell said that if an individual has been consulting with short sale attorneys about disposing of their home, they should make certain they inform them that they have decided to seek court-ordered debt relief. “A short sale can be a way to avoid bankruptcy. The temptation may be to hedge your bets; to try to seek a short sale concurrent with preparing to file for bankruptcy, using two different lawyers, and to see which works out first. This is a very bad idea. By law the bankruptcy trustee takes control of all real estate. ”
Cottrell added that Chapter 7 is for people who own little or no real property; a Chapter 13 lawyer can advise individuals who have substantial interest in real estate.
3) The third “don’t” on Cottrell’s list involves family. “Don’t put money in a bank account in your kid’s name. In fact, don’t pay money you owe to anyone in your family. Don’t give them a gift of property. You cannot hide assets from the court by putting them in the hands of family. And make certain you tell your attorney that you owe them money. It is a very common misconception – that somehow the rules are different when the court trustee looks at financial dealings with family. They are not!”
For media information, contact Justin Cottrell, PA at 239-449-4888
http://www.wjc-law.com
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