The stigma that often accompanies a bankruptcy filing can cause you to drag your feet. Don’t do that! The sooner you hire an experienced and proven bankruptcy lawyer, the sooner you can start moving forward with your life. Your attorney will immediately become your intermediary with creditors, and can file your petition in a timely manner, so that you start to get the protections afforded by the bankruptcy laws.
When you file a bankruptcy petition, the court can go back and look at how you spent your money in the days, weeks and months (usually up to 90 days) immediately preceding the filing. You may be prevented from discharging debts if the court determines that you intentionally ran up debts that you knew you would seek to eliminate in bankruptcy. You may also be at risk for allegations of bankruptcy fraud.
Don’t use any credit cards or enter into any other debt-based obligations. Spend any income you have on necessities, such as food, shelter and transportation. If you have anything left over, make payments on secured debt, such as mortgage or car loans. If you qualify for Chapter 7, you’ll be able to discharge unsecured debt, so there’s little to be gained by using the limited resources you have to pay those obligations.
These payments may be construed by the court as preferential payments—the court can look at any payments made to friends and family in the last twelve months. If the payment is ruled to be preferential, the person to whom it was made will have to return it.
At the office of Howard N. Sobel, we provide personal bankruptcy counsel to men and women throughout the state of New Jersey. Contact our office online or call us at 856-424-6400 to set up a free initial consultation. Evening and weekend appointments can be arranged upon request. We accept all major credit cards.
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