Bankruptcy Filing Tips

A bankruptcy is in most cases a new experience for both individuals and businesses. It is not something you regularly do like paying taxes. And so, it can’t be avoided that there are things you don’t know about filing for bankruptcy that might have been helpful if only someone told you about them. Here, we are running down a list of some of the facts you should be aware of to aid you in the process:

• States have varying definitions of what assets a debtor can retain in bankruptcy, especially equity assets, and so it is important for you to know what are these exempt assets so that you can identify them in your filing and possibly keep them from being liquidated.
• You cannot just transfer or sell assets for some period prior to bankruptcy as this can be voided if the court finds it fraudulently done. Be aware of the transactions you make immediately before filing for bankruptcy as this could endanger your chances of being granted bankruptcy protection by law.
• Seek professional assistance to choose the best type of bankruptcy for you. Mistakes and incomplete filings cost money. It could also cost you your business if you do not make a good restructuring plan.
• When choosing for a bankruptcy lawyer, be aware that the lawyer of your choice should have no business dealings that would pose a conflict of interest either with you or with your creditors. As every state has different filing requirements, your lawyer should be familiar with the procedures of the state you are filing bankruptcy petition with.
• A joint filing with a spouse is possible; seek professional advice whether this is beneficial for you.
• Fill up filing forms accurately and completely to avoid having to pay additional court and lawyer costs.
• Make plans in case your reorganization plan is not approved, or your loans are not completely discharged under Chapter 7.