Unfortunately, many people make decisions about financial issues before talking to a legal expert about the situation. Couples or individuals should always talk to a Chapter 7 bankruptcy attorney before doing anything with property or assets.
When people fail to talk to a Chapter 7 bankruptcy attorney in Tacoma WA, before they make mistakes, they can create legal jeopardy for themselves. They may also be limited as to what can be discharged through the bankruptcy, impacting their credit score and the responsibilities to the creditors for years.
Credit Card Charges
It is essential to stop using credit cards for unsecured types of purchase as early as possible. Sometimes, in error, people assume all credit card debt will be discharged. This can lead to almost reckless and willful spending on the cards, assuming the creditors will have to settle through the bankruptcy process.
However, if the credit card charges are fraudulent or make under false pretenses, which includes knowing there was no way to repay the debt, the total on the card may be excluded from the process and will be required to be repaid in full by the individual.
Another key issue a Chapter 7 bankruptcy attorney will look for is any large cash advances taken on any credit cards before filing. This will usually be considered a fraudulent charge and, like the excessive credit card purchases, will not be discharged.
Transferring or Selling Property or Assets
In Tacoma, WA, as well as across the state and the country, it is important not to transfer, sell or give away any assets of value prior to filing for Chapter 7 bankruptcy. This includes any substantial amount of property or assets as it is assumed by the court to be a way to hide assets through the bankruptcy proceedings. The court, through the bankruptcy attorney, can sue the individual for the property, which creates further stress in an already difficult time.
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