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If you don’t list a debt, you may not be able to discharge it through bankruptcy. If you do discover a debt that you forgot before a discharge is issued, you can simply amend your petition to include that debt. If you realize you’ve forgotten a debt after you receive a discharge, you may have to file a Motion to reopen your bankruptcy and to permit you to amend your petition to add an additional credit.
If you hide assets and the trustee of your bankruptcy case discovers them, this could be grounds for a criminal charge and may affect your discharge. You must be upfront and honest about all of your assets and be sure that you have told your attorney about everything that you own or hold.
This ensures that your assets are either covered by an exemption or else helps your attorney to determine if Chapter 13 rather than Chapter 7 Bankruptcy would be a better option for you.
Several years ago, the bankruptcy code was amended to state that any charges on credit cards in excess of $600 are nondischargeable. This means that if you run up significant credit card debt prior to filing for bankruptcy, you cannot discharge those debts. It’s best to be careful, conservative, and frugal with your spending when you’re facing bankruptcy.
If you transfer a property that is not exempt, the trustee of your case could file an action for a fraudulent transfer, reversing the transaction and making that asset available to creditors. For example, if you sold a piece of property and received proceeds from it, the trustee could either come after those proceeds or else seek the property itself and make it available to creditors.
Selling property this way won’t hide it or its value from a trustee and it’s important not to make these types of major transfers prior to filing.
It’s important to be sure that you file properly, claim all possible exemptions, and ensure that all creditors are included. An attorney can help you accomplish all of these things and ensure your petition is filed correctly.
A lawyer will also guide you through the “means test” to determine if your assets and income level better qualify you for Chapter 7 or Chapter 13 Bankruptcy. If you don’t have disposable income, you can file for Chapter 7 bankruptcy. If you do have disposable income, Chapter 13 bankruptcy allows you to pay off a portion of your debts over time.
A lawyer will ensure that you inventory your debts and assets correctly, help you file for the best type of bankruptcy for your circumstances, and help you avoid the many pitfalls that can occur when you file, preventing serious legal and financial problems down the road.
For more information on Filing For Bankruptcy In New Jersey, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (732) 733-2830 today.
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