Is Pre Planning Bankruptcy Considered Fraud?

On May 13, 2010, In Financial Advice

Considering filing bankruptcy? Live in a high unemployment state such as Alaska or Michigan? Now is the time to meet with an Alaska bankruptcy attorney or Michigan bankruptcy attorney or an attorney for what ever state you live in to get free consultations.  If you are considering using your legal right to file bankruptcy then you are starting to do more with your financial future than you most likely ever did with your financial past. In other words, without you really knowing it you most likely are at beginning stages of your bankruptcy planning; which now brings us to a legal and ethical question:

Is pre planning a bankruptcy considered fraud?

The answer is really subjective to what your current circumstances are. If you  are applying for loans and using credit cards to pay to pay for your school with the intent to file bankruptcy then yes, this would be considered fraud. However, if you have several loans and credit cards and you begin researching your options on what you need to do to file bankruptcy then that is not considered fraud. One thing you should be aware of is once you visit a bankruptcy attorney and you continue to use your credit cards by charging and purchasing things then could open yourself up to fraud charges. The credit card or loan servicer would have to prove you intentionally purchased and borrowed after visiting a bankruptcy attorney.

What is the point of pre planning a bankruptcy?

Preplanning starts with meeting with an attorney and reading bankruptcy forums. You really want to know if anything will cause you problems when you file. If you field by your self with the help of an attorney you could end up finding out that a credit card balance transfer you made 3 months ago to a lower rate may not be able to be discharged. You may also find out the money that was loaned to you by your parents, friends or grand parents that you were paying on could be considered as preferential payment and therefore dragging them into your bankruptcy case even though they did not have anything to do with it. Meeting with an attorney can help point out little pitfalls pop up and could save you thousands because your attorney tells you need to wait 90 or 120 days to file to prevent any problems. You just effectively pre planned your bankruptcy by following your attorneys’ advice allowing you the ability to eliminate your credit card debt.

Tagged with: • •
 
0 Comments
Leave A Response

Reasons to Reconsider Bankruptcy Filing

On March 13, 2010, In Financial Advice

Although bankruptcy is frequently talked about as a way to wipe the record clean and to remove all your problems when it comes to financial issues, the reality is that most accountants will tell their customers not to do it. It isn’t that they think bankruptcy is not a good option; it’s just that they think there are so many other ways to go. Anyone who has argued been through a bankruptcy will tell you it was a horrible experience, and they’ll tell you it does not give you a clean record. Quite the opposite actually, it was a very emotionally draining experience to claim bankruptcy. It was not a good ending that allowed them to live happily ever after. In reality, bankruptcy is considered by psychologists to be one of the most traumatic events that human being experiences besides things like illness, death, divorce, and being disabled. You might think that it’s strange to compare filing bankruptcy to someone dying, but it does leave a scar on your emotions and mental state of mind just the same.

Luckily, there are many other options available to anyone who wants to fix their financial affairs besides a bankruptcy filing. You could consider credit counseling, consolidation loans, debt repayment plans, or hacking up all your credit cards. In the event that you decide bankruptcy is the best choice though, do get in touch with a qualified attorney because a legal professional should assist you to make decisions on what your choices are depending on your specific situation, and can also help you with the actual filing of a bankruptcy claim if that’s what both of you decide to do.

Claiming bankruptcy can be a good decision for a lot of folks, although one should be sure to gather as much information about other alternatives first. Educating oneself thoroughly about alternatives to bankruptcy can maybe even assist you in reaching the final result which would be financial freedom from debt.

Tagged with: • • •
 
0 Comments
Leave A Response

Filing For Bankruptcy

On August 28, 2009, In debt management, Financial Advice

If you are having severe financial difficulties then you may have come to the realization that you are going to have to get around to filing for bankruptcy. If that’s the case you will probably be asking a lot of questions regarding how to go about this as bankruptcy is something that few of us think about until it is happening to us.

You’ll be pleased to hear that things have become much easier for persons in the UK who find themselves in this situation thanks to new legislation.

It used to be the case that your creditors would start the bankruptcy proceedings when you couldn’t pay them but these days its possible to do this yourself with voluntary liquidation as long as your creditors agree to the action.

If you go through with this you should be aware that most of your assets will be handed over to a trustee who will be in charge of them from that moment and they will endeavor to find out how much you are worth and how your cash should be divided up amongst your creditors.

The major advantage of filing for bankruptcy is that your creditors can no longer pursue you for the money they owe you, and the money you owed is written off.

The major disadvantage is that you may find it very hard to get access to credit in the future. For this reason you should think very hard about initiating proceedings.

Tagged with: • • • •
 
0 Comments
Leave A Response
Go To Top »