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The Consequences of Waiting Too Long To File Bankruptcy by Kevin Judd
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The Consequences of Waiting Too Long To File Bankruptcy |
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Finance & Investment,Law
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While it is understandably difficult for many people to admit they need help when finances get out of control, you should know that there can be significant drawbacks to waiting too long to file bankruptcy. If you have fallen behind on bills and are struggling to keep up with payments, it is in your best interest to speak to a bankruptcy attorney as soon as possible to protect your assets while you still can. Waiting too long to file can have a negative impact you if your case involves: - Foreclosure — You need to file before your home is sold at a foreclosure sale, otherwise it will be too late to cure the arrearage and reinstate your mortgage.
- Tax Liens — Filing bankruptcy will prevent the Internal Revenue Service (IRS) from filing a lien at all, but you will have to pay additional taxes, penalties and interest on the tax claim if the agency files the lien before you file bankruptcy.
There are also mistakes people make which can make their bankruptcy cases even more difficult to resolve. If you are considering filing bankruptcy, you should never: - Repay friends or relatives — Friends and relatives are not allowed to be treated any better than your other creditors, and the trustee can sue the friend or relative to collect money and disburse it evenly among all your creditors.
- Transfer property out of your name — Called “fraudulent conveyance,” this cause of action can restrict or eliminate certain types of bankruptcy relief to which you are entitled.
- Allow creditors to obtain judgments — Judgments issued against you in collection cases turn unsecured creditors into secured creditors.
- Lie to your lawyer — A surefire way to make a bad situation worse, lying to an attorney or intentionally omitting relevant facts can risk loss of assets, having your bankruptcy discharge denied, additional fines or imprisonment.
It is not uncommon for me to have clients who openly express regret that they did not file bankruptcy sooner, but I have yet to meet one who felt they should have waited a little longer. If your finances are beyond your control, now is as good a time as any to speak with a bankruptcy attorney. Kevin D. Judd
Related Articles -
filing bankruptcy, bankruptcy attorney, filing bankruptcy,
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