Filing for bankruptcy is not an indication that you are lazy, greedy or morally not upright. This is because a lot of bankruptcies are brought about by medical conditions, divorces and unemployment. Filing for bankruptcy involves a very special decision. Whether you decide to file or not to file for bankruptcy, these are some of the things that you should know.
You should list all the debts that you owe and also remember to list the name of every person that you owe. This list includes people that you believe you do not owe but who think you owe them. This is because the disputed debt may turn out to be an actual debt in fact. If you fail to list a debt, that debt may not be discharged.
You should also never hide properties. You must always give a full disclosure of all your property and financial assets. Trying to hide your property and other assets might get you into trouble. This is because there are a lot of ways in which creditors can find out what you own and what you do not own. Your bank statements, credit card statements, tax returns, insurance policies and even data from your computer can expose you.
Remember that all bankruptcy filings are done under the penalty of perjury. This means that you swear to tell the whole truth concerning your bankruptcy and you should therefore be punished if you fail to tell the truth or the whole truth.
Your best approach in filing for bankruptcy is to truthfully declare all of your assets. Remember, the first and best step to filing for bankruptcy is to see a bankruptcy attorney to explain all your options under the law to you.
Not all debts can be discharged in a bankruptcy proceeding. If you owe taxes, those taxes cannot be discharged in a bankruptcy proceeding. Similarly, if the IRS has a lien on your property because of taxes that you owe to the IRS, those liens cannot be discharged via bankruptcy. Another type of debt that is not discharged through bankruptcy is student loans and other government loans.
Filing for bankruptcy will not discharge you from fulfilling your obligations under a court declared child support or child maintenance order or alimony payments. If there is a court order against you to pay certain individuals or businesses some amount owed, those amounts will not be discharged through bankruptcy. That is one reason why you should speak to your bankruptcy attorney before your debtors file their claims against you in court. Once those claims are filed before you file for bankruptcy, you cannot discharge any amount that the court will order you to pay to your creditors through a bankruptcy proceeding.
Debts incurred through a court order to pay damages for willful and malicious injury and judgments in wrongful death or personal injury cases arising from your intoxication will not be discharged via bankruptcy. Debts incurred through fraud cannot also be discharged in a bankruptcy proceeding. You cannot clear these non-dischargeable debts with your credit card and later file for bankruptcy. The bankruptcy court will find out and you may end up in trouble. Just speak to your bankruptcy attorney as soon as you are behind on your payments and you feel you cannot keep up with the payments. We recommend using a professional and experienced NYC bankruptcy attorney at the first sign of debt trouble.
