Did you take an expensive vacation right before your bankruptcy? Are you due to get a lot of money from a personal injury lawsuit? These events may prevent you from filing for bankruptcy successfully. Bankruptcy attorney Benjamin Ginter runs the Law Offices of Benjamin J. Ginter in Cranford, New Jersey. Here, he talks about the pitfalls which may make you have second thoughts about filing.
Many people think that filing for bankruptcy will solve a lot of problems. That conclusion is correct for most people. But some pitfalls may prevent a person from filing, so it’s good to be aware of what they are before filing.
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 problems which may make your bankruptcy unsuccessful.
Here are some examples of problems:
You took large cash advances right before you decided to file.
You wrapped up a lot of debt right before you decided to file. For example, you went on an expensive vacation right before filing.
You disposed of your property just 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 had a personal injury lawsuit where you might get much money. That could become part of the bankruptcy estate, and they could be interested in those proceeds and eventually take them from you.
Moreover, before you file, it is necessary to know what type of assets you have and if they could be exempted. You also need to know how to avoid pitfalls and what property could be subjected to the trustee actually taking it and selling it.