Consumers that are planning on filing for bankruptcy may think it’s wise to go through the process alone without seeking the help of a bankruptcy attorney, but this can prove to be incredibly risky, especially if it’s a Chapter 7 bankruptcy which involves full elimination of the debt upon a discharge being issued.
When someone decides to file for bankruptcy under Chapter 7, a trustee will determine whether the debtor may have assets that can be liquidated to satisfy a portion of their entire debt. Most consumers are unfamiliar with the many exemptions that the bankruptcy code offers which means they could possibly risk their assets including their home.
An experienced bankruptcy attorney will thoroughly review each and every asset and use their knowledge of the bankruptcy code to ensure that the debtor receives all exemptions they may be entitled to, potentially protecting assets from being liquidated.
Some debtors mistakenly believe they can protect their assets like their home or vehicle by transferring them to family or friends just prior to a bankruptcy filing. Such an action could result in a situation where the debtor will be accused of fraud as this action is viewed as “fraudulent conveyance”. Not only can this negatively affect whether the bankruptcy is discharged, the debtor may end up having to pay back debts plus serving possible jail time. Always speak with a bankruptcy attorney about possible transfers ahead of time.
This information is provided by Miami bankruptcy lawyer Alonso, Perez & Santos, LLP. Our areas of practice include bankruptcy, insurance litigation, debt harassment, credit card defense, foreclosure defense, immigration law, condominium law, business start-ups, and more. Call 305-676-7545 to speak with one of our attorneys and receive a free consultation including a Miami insurance attorney. We look forward to working with you.
This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.