4 Actions You Should Shun When Filing Bankruptcy in Tyler TX

by | Jul 15, 2014 | Lawyers

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Real life bankruptcy is no monopoly game. It is a grave legal proceeding that offers the debtor the chance to recover financially, and the creditors an opportunity to collect money they are owed. Filing Bankruptcy in Tyler TX involves numerous steps that can easily overwhelm you. However, there are certain actions that you should take to ensure that the process proceeds as smoothly as possible. Here is a list of the four things that you should avoid at all cost.

Do Not Represent Yourself

In a bankruptcy case, there is no “I.” When your creditors start to hunt you down, one automatic reaction is to save as much money as you can. Attempting to save on costs by Filing Bankruptcy in Tyler TX yourself can easily backfire on you. The United States Court even strongly recommends that you get yourself an attorney like William H. Lively, JR. P.C.

Do Not Gather More Debt

One of the first steps to getting out of the problem you are in is recognizing the cause of your financial problem. In this case, this would be debt. Adding new liabilities like home equity loans or credit cards, just as you are filing bankruptcy in Tyler TX creates grounds where the court can, justifiably, slap you with fraud charges.

Do Not Ignore Paying Your Taxes

It does not matter how many creditors are after you, it is certain that the U.S. Government will pay itself first. One requirement for filing bankruptcy is that you submit tax forms for the previous years. Do not delay this process by failing to file your income tax forms.

Do Not Move Assets Around

Moving assets by either transferring or selling them before filing is one way of trying to keep the assets safe. However, if you do this alone, without the aid of a legal counsel, you can quickly find yourself facing severe criminal penalties and fraud charges.

In addition to the above list of definite no-no’s while Filing Bankruptcy in Tyler TX, is the fact that you should not attempt to repay your debts selectively. Such an action is frowned upon by the courts and is considered as “preferential transfer” that can be undone.

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