If you are reading this, the holidays are now over and you are probably shocked by the huge amount of debt you accumulated on your credit card statement. Maybe you wanted to make this Christmas extra special this year and did not think about how much you spent? Maybe you lost your job? Maybe you were in an accident? At this point, the only thing you know for sure is that you probably won’t be able to pay this off and filing for Bankruptcy may be in your near future.
It’s Okay to File Bankruptcy
The first thing people usually do when they call me and tell me they are thinking about filing bankruptcy is tell me that they never would have thought they would be in this position. They also always feel the need to justify themselves to me because they are extremely embarrassed. I always begin by telling my clients that it’s OKAY! At least you are taking the initiative to get out of debt. Although, it may not be something you ever thought you would have to go through, filing for bankruptcy may be necessary. Sometimes life throws curve balls and sometimes you just have to roll with them to get back on your feet.
Things to Keep in Mind If You are Thinking About Filing Bankruptcy
It is important to speak with an experienced bankruptcy attorney to decide if bankruptcy is the right option for you. If you are thinking about filing bankruptcy then there are something that you should keep in mind:
- Stop charging on your credit cards: it’s important to know that if you continue to use your credit cards and file bankruptcy it may look as though you are committing fraud and some of the debt may not be dischargeable. Hold off on charging until you speak with a bankruptcy attorney.
- Do not pay any friends or relatives any money. Depending on what was paid and what it was for if you file bankruptcy the trustee can sue your friends or relatives to get back that money to pay your creditors.
- Do not transfer any property out of your name. There is a look back period and a fraudulent transfer is extremely illegal! You can’t transfer things out of your name prior to filing bankruptcy.
- Do not take large sums of money out of your retirement and spend it all on frivolous things. Remember any large sums of money can be looked at by the trustee and he will ask you what you did with that money.
- Do not sell anything. Before deciding whether to sell your car or your business it is important to speak with an experienced bankruptcy attorney beforehand.
If you are considering filing bankruptcy it’s okay! Do your research and look for a good bankruptcy attorney who can help you get out of debt.
Karra L. Kingston is an experienced bankruptcy attorney in New York and New Jersey. Call today to get a free consultation in order to see if Bankruptcy is the right option for you.