Do’s and Don’ts of Bankruptcy

If you are considering bankruptcy, there are some things you can do to protect yourself and your assets. At RHM LAW LLP, we work hard to help our clients make smart decisions when it comes to Chapter 7 and Chapter 13 bankruptcy.

Visit our offices in Los Angeles or Encino to discuss your situation in a 30-minute risk-free consultation. Call our bankruptcy attorneys in Los Angeles today at (213) 344-0043.

Things You Should Do

There are several things you should keep in mind as you proceed, such as:

Take your situation seriously: Ignoring your financial trouble will not make it go away. Speak to a RHM LAW LLP bankruptcy lawyer about your options as soon as possible.

Be honest about all your debts and assets: To best serve you, our attorneys need all of your financial information, even if it is embarrassing to you. We can provide a feasible solution in bankruptcy. Keeping us informed will create the best results.

Continue making payments on vehicles and homes you intend to keep: If you are behind on your payments, your creditors can repossess your property.

Things You Should Not Do

Be certain you are avoiding behaviors such as:

Withdrawing money from your 401k: Generally, this account is exempt in bankruptcy, absent fraud. Further, early withdrawal makes you liable for taxes and penalties that are not dischargeable in bankruptcy.

Buying massive purchases on or taking out large cash advances from your credit cards before filing: If the court sees exorbitant purchases or cash advances six months to one year prior to filing, it may consider your petition fraudulent and dismiss your claim. Contact an attorney for accurate answers to any questions or concerns you have.

Transferring property out of your name: Hiding assets is risky and illegal. Our bankruptcy attorneys can let you know about legal ways to protect your property.

Taking cash advances from one credit card to make payments on another: Once you start juggling credit cards, you are in trouble. Speak with our firm immediately.

Repaying friends or relatives before filing: You cannot treat friends and family preferentially over your creditors.

Speaking with creditors without your bankruptcy attorney present: After you file bankruptcy, your lawyer will communicate with your creditors on your behalf.

Considering bankruptcy an easy way to get rid of all your debts: Not all debt is discharged in bankruptcy, including certain tax debt, student loans, and child support payments.

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For experienced bankruptcy guidance from attorneys who understand your needs, turn to RHM LAW LLP. We can help you stop a foreclosure, repossession, garnishment, and/or creditor harassment. We proudly serve clients in San Fernando Valley and throughout Los Angeles, Riverside, San Bernardino, and Orange Counties.

Contact our Los Angeles bankruptcy attorneys today to schedule your 30-minute risk-free consultation.