The bankruptcy court may dismiss your case if the Trustee thinks you have tried to cheat your creditors or concealed assets so that you can keep them for yourself.
Certain activities are red flags to the courts and trustees. If you have engaged in any of them during the past year, your bankruptcy case may be dismissed. These no-no’s include:
1.Unloading assets to your friends or relatives to hide them from creditors or from the bankruptcy court.
2.Running up debts for luxury items when you were clearly broke and had no way to pay them off.
3.Lying about anything on the Bankruptcy petition.
In addition, you must sign your bankruptcy papers under "penalty of perjury" swearing that everything in them is true. If you deliberately fail to disclose property, omit material information about your financial affairs, or use a false Social Security number (to hide your identity as a prior filer), and the court discovers your action, your case will be dismissed and you may be prosecuted for fraud. Your attorney will not independently check everything that you put on your Bankruptcy Schedules. He will believe what you tell him. If you lie, it is you that will face penalties. All your attorney can do is tell you what you are required by law to do
Don't ignore a lawsuit. Call us immediately if you are served with legal papers. If you are sued or involved in a lawsuit, it is very important that you take them seriously and deal with them immediately. Failure to respond to a legal can lead to liens being placed on your home which can impact your ability to file for bankruptcy, refinance or sell your home. Liens on your property create complications that can make your bankruptcy less certain, more time consuming and more expensive
The following are our suggestions:
1. Do not continue to use credit cards after you decide to file the Bankruptcy.
2. For a Chapter 7 petition, an individual is allowed to exempt no more than $150.00 in any one bank account at the time of filing the bankruptcy petition. A married couple is allowed to exempt no more than $300.00 in any one bank account or no more than $150.00 in each of two accounts.Discontinue all use of checking accounts two weeks before you will file the petition so that all checks will have cleared before filing. You may use your account again after the bankruptcy petition is filed.
3. If you are involved in any auto accident before or after you file your bankruptcy, you must notify your attorney.
4. If you have direct deposit into your bank account of your paychecks, Social Security, or any other type of income, the filing of your Bankruptcy needs to be timed to make sure that on the day the Bankruptcy is filed that you have used all of the money in the account consistent with the Bankruptcy Laws and Rules.
5. If you have payroll deductions from your paycheck for payment of any type of debt or loan the filing of your Bankruptcy needs to be timed to make sure that on the day the Bankruptcy is filed that you have used all of the money in the account consistent with the Bankruptcy Laws and Rules.
6. If there is any year for which you have not filed a required tax return of any kind, you must mention this to the attorney. If you expect to receive a tax refund, your bankruptcy trustee may claim a portion or all of your refund.The court is entitled to take the portion (percentage) of tax refund earned for currentyear.
7. If there are changes of any kind on the information you have given us on the bankruptcy questionnaire (phone number, address, marital status, employment, income or expenses, sale of any property, additional creditors, etc.), it is important that you notify our office of these changes immediately.
8. If you are keeping your apartment or home, you must make all rental and mortgage payments when due after the petition has been filed. Also make all payments on all secured debts in a Chapter 7 bankruptcy when you want to keep the item.
9. Payments to the trustee in a Chapter 13 bankruptcy must begin 30 days after the bankruptcy petition has been filed.
10. If you move to a new address after the petition has been filed, you must notify our office promptly. We will correct our records and also notify the court of the change.
11. Do not make any major financial decisions (to buy, sell, or give something away) without checking first with your attorney. Your attorney will discuss with you any possible complications or problems that these actions might cause.
12. If a judgment has been entered against you a lien may have attached to your home or other real property. We recommend you have a title search performed to locate liens. If liens exist, it is possible to remove them by taking appropriate legal action. These services are available for an additional fee.Hourly rates apply. Talk to your attorney if you believe a lien may have attached to your home or other real property.
13.Read the Bankruptcy paperwork and the fee agreement that you receive from your attorney.If you don't understand something, talk with your attorney.Your attorney will presume that you agree and understand everything that you have been given and signed unless you tell him differently.Even though your attorney is extremely experienced and intelligent, he cannot read minds.If you have a question or are concerned about something, ask him about it.
14. READ and make sure you UNDERSTAND the Bankruptcy Woksheet that your Attorney will give you.
