Fanning & Hughes—Attorneys at Law
Our New York law firm represents people and businesses in the New York City metropolitan area and Long Island, in a range of legal services. The attorneys at Fanning & Hughes specialize in New York Estate Administration and Probate, Wills and Trusts, Real Estate, Bankruptcy and Personal Injury.
Six Mistakes To Avoid Prior To Filing Bankruptcy
Transferring property out of your name
Any property transferred out of your name in the last six years can be undone by the bankruptcy trustee.
Running up your credit cards
Once you have made your decision to file bankruptcy, do not use your credit cards. Debts in excess of $500 for luxury goods and services owed to a single creditor within 90 days of filing are presumed to be nondischargeable.
Cash advances of more than $750.00 within 70 days of filing are presumed to be nondischargeable.
Repaying a family member
When repaying debts, you cannot treat your family member any better than you would any other creditor. This is taken very seriously. The bankruptcy trustee can sue the recipient and reclaim any amount repaid to the family member within six years of filing bankruptcy.
Using a line of credit or second mortgage to pay debt
Don’t take a loan against your real estate to pay credit card debt. It is possible that you may be able to discharge the credit card debt and keep your house at the same time.
Liquidating your retirement account
Retirement accounts are protected assets. You can go through a bankruptcy proceeding and keep whatever you have in most retirement accounts, free and clear. Many people drain their retirement accounts in an attempt to pay down debt, only to file bankruptcy shortly thereafter.
Hiding something from your attorney or the Court
Your attorney cannot properly advise you when you do not disclosure all information. More importantly, failure to tell your attorney the truth can have dire consequences for you. What your lawyer doesn't know, CAN hurt you.
Federal Law provides severe criminal penalties for bankruptcy crimes. These crimes include concealment of assets, false statements, false claims, bribery, filing under a fictitious name and perjury. A party that violates Title 18, United States Code, §152, shall be fined, imprisoned for up to 5 years, or both.
You must provide all information requested and must do so in a truthful manner. You must review the petition and schedules carefully before signing and make sure all of the information is true.
We are a federally designated debt relief agency helping people file for relief under the bankruptcy code.
FANNING & HUGHES, PLLC
108-18 Queens Blvd -
4th Floor
Forest Hills, NY 11375
718.261.3290
contact@FHLawOffice.com
