Bankruptcy – Important Rules

LEARN THE MUST KNOW RULES BEFORE YOU FILE BANKRUPTCY

  1. You must list all your debts. You can not play “favorites” in listing your creditors. All creditors must be listed – even those that you intend to pay after the case if filed.
  2. Everything that you own must be listed in your bankruptcy. This means all your real estate or personal property or anything that could be an asset of yours must be listed. The bankruptcy law offers very strong protection of most assets, but you can lose this protection if you fail to disclose it. Worse yet, failure to disclose it could be considered a federal crime.
  3. If you are expecting a large tax refund, the refund may have to be turned over to the bankruptcy trustee. Do not spend it without talking to a bankruptcy lawyer if you know you are going to file before you receive it.
  4. If you are self employed, you need to list all business information. This includes all of your business debts, business assets, and business income. If you own a business – like a corporation or LLC, the rules are a little different – consult a bankruptcy lawyer that understands bankruptcy and owning a business.
  5. You must report all your income. Many types of checks or money that you receive may not seem like “income” in the traditional way like a paycheck, but these types still must be disclosed. Commonly, this includes: social security, family support, alimony, unemployment, and pensions.
  6. Never, ever charge a lot of new debt shortly before filing a bankruptcy. If you intentionally incur debt knowing that you are going to file bankruptcy on that debt, you may find yourself charged with a federal crime. Don’t do it!
  7. Don’t stop making payments on your house or car if you intend to keep them after the bankruptcy. You also need to maintain payments on furniture, equipment, and other property that you have used as collateral for a loan.
  8. Don’t lie in your bankruptcy case. It may seem obvious, but your bankruptcy is a federal court proceeding and lying in federal court could lead to very big problems for you. Lying can get your case thrown out of court. The Court may disallow a bankruptcy if you misrepresent any facts or otherwise lie on the papers filed in bankruptcy court. Worse yet, lying in bankruptcy court could be referred to the U.S. Attorney for criminal prosecution.
  9. Your bankruptcy filing stops all creditors and bill collectors. The creditors, including tax collectors, are barred from attempting to collect any debt from you the instant the petition is filed. This protection is permanent for all discharged debts. However, bankruptcy does not stop criminal proceedings or government regulatory proceeding.

Contact Maxwell Attorneys LLC at 414-727-0123 today to learn more about how we can help with your financial situation. We serve Southeastern Wisconsin residents in working toward financial stability.