Bankruptcy Lawyer in Indianapolis Agrees with Three Pre-Bankruptcy No-Nos

December 25, 2011 5:20 pm Published by

Even with thousands of copies of my book “Top Ten Myths About Bankruptcy in Indiana”  circulating around the state, when people have financial troubles, they don’t always think straight, I realize.

So when one of the Anderson bankruptcy lawyers who works in the Top Ten Myths About Bankruptcy in IndianaZuckerberg bankruptcy law offices there emailed me a newsletter from Palm Harbor, Florida, warning against common mistakes people making before filing bankruptcy, I decided my Bankruptcy in Indiana readers needed a review “lesson”.

Palm Harbor Patch Bankruptcy “No-No” #1: Transferring property to family and friends, expecting to get it back when you’re done with the personal bankruptcy in Indiana. Fact: if you transfer property to anyone, the bankruptcy trustee can go after that person.  What’s more, as all good lawyers for bankruptcy in Indiana know, the “look-back” can go back to the four years leading up to the bankruptcy.

Palm Harbor Patch Bankruptcy “No-No” #2:  Max-ing out all your credit cards right before bankruptcy. If the bankruptcy court realizes you’ve borrowed money with no intention or ability to repay that money, it may hold you responsible for those debts even after the bankruptcy is over!  That principal holds true for bankruptcy Chapter 7 in Indiana, as well as for Chapter 13 bankruptcy law.

Palm Harbor Patch Bankruptcy “No-No” #3: Cashing in your IRA or 401K to pay bills, hoping to avoid filing bankruptcy.  “Your IRA and 401(k) are among one of your most protected assets in a bankruptcy proceeding. In almost all circumstances,” explains Palm Harbor Patch. Your 401(k) is exempt from the bankruptcy estate — you get to keep it after bankruptcy. Your basic IRA is exempt up to $1 million.

There are many common misunderstanding and mistakes, but those are three of the more common no-no’s.  The most important thing is to ask for help – help to stop foreclosure, student loan debt help, payday loan debt help, or help figuring out which type of individual bankruptcy in Indiana best fits your situation. 

At the Zuckerberg bankruptcy law offices, consultations cost nothing.  Mistakes?  Now THOSE can be very expensive!

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This post was written by Mark Zuckerberg

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