Mistakes that Happen When Dealing With Bankruptcy

by | Apr 16, 2013 | Attorney

bankruptcy attorneys ColoradoWhen the bills and loans are creeping up on you and there does not seem to be any way to get out of the spiral of debt it might be time to look into filing for bankruptcy to give you the opportunity to for a fresh start. The decision to file bankruptcy is not one to be entered into lightly. If you have any questions or concerns in regards to determining if bankruptcy is the right path for you, there are many bankruptcy attorneys in Colorado who are here to help you out. Some of the things that you should make sure never to do when thinking about filing for bankruptcy include not paying back loans that you receive from family and friends, taking money from retirement accounts, hide any of your assets or moving them to another account, and never ignore any lawsuits that have been taken against you.

Family and Friends Loans

Bankruptcy attorneys in Colorado will be able to assist you in determining which loans and debts you may want to pay off before filing for bankruptcy. Sometimes making a few payments on your loans or credit cards will look good since you are at least attempting to resolve your debts. It is never a good idea to pay off any loans that you have received from family and friends. This will be seen as discrimination against all of your other creditors and will not help you out when filing for bankruptcy.

Retirement Accounts

Make sure to talk about your retirement accounts with bankruptcy attorneys before taking any money out of these accounts. Your retirement accounts will be protected even in the case of bankruptcy and will be yours no matter the outcome of the suit. If you do take anything out of your retirement account you will have to deal with taxes and penalties for taking out money early and you will not receive any help from bankruptcy for this type of debt.

Hiding Assets

Never try to hide any of your assets from bankruptcy attorneys Colorado area or from the bankruptcy courts. Some people feel this is the best method to take in order to ensure that personal property is kept safe from the bankruptcy and will transfer money or real estate property to a friend or other family member. You can receive exemptions for personal property but you will not receive these exemptions if the property is in another person’s name.

Ignoring Pending Lawsuits

Ignoring a lawsuit that has been brought against you can be detrimental to your credit health and your bankruptcy suit. If the creditor is awarded from the suit you will need to pay off the debt right away. If you completely ignore any court orders the court will hold you in contempt.

If you are in need of bankruptcy attorneys Colorado, contact the Law Offices of Christopher A. German, LLC. They can be reached at 303-617-8447.

bankruptcy attorneys Colorado

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