Individuals who anticipate filing for bankruptcy often try to prepare their debts in assets for the events that will immediately follow a Chapter 7 or Chapter 13 bankruptcy filing date. As it turns out, many people don't realize that the decisions they make regarding their debt and property before they file for bankruptcy may negatively affect their debt relief options.
For nearly two decades, Vidmer Law Office has helped individuals and families understand and prepare for bankruptcy. Paducah bankruptcy assistance attorney Steve D. Vidmer understands your concerns and frustrations about losing what you value most when you go through bankruptcy. We are ready to answer your questions and work with you to plan a better financial future.
Helping You Understand the Bankruptcy Mistakes to Avoid
It's hard not to be scared about the potential of losing everything you own because you can't pay your bills. Murray Chapter 7 attorney Steve D. Vidmer is committed to alleviating the stress and anxiety you feel about your overwhelming debt.
It is important to avoid making some of these common mistakes:
- Not disclosing information about all the items you own to your attorney: In order to find the best debt relief option for your situation and protect those assets you want to keep, you must tell us about all the personal and real property you own. Most of the time the property you think you are protecting by not disclosing may actually be exempt in your bankruptcy, automatically protecting it from liquidation.
- Maxing out credit cards before filing bankruptcy: Excessive charges made on credit card 60 to 90 days before filing bankruptcy can be deemed fraudulent and will not be discharged.
- Cashing out retirement funds before filing bankruptcy: Don't pay the IRS penalties for cashing out your retirement funds early in order to try to pay your bills. IRAs, 401(k)s and other retirement accounts that qualify under the tax code are exempt in bankruptcy, meaning you will be able to keep them.
- Transferring cars, houses and other property out of your name before filing for bankruptcy: Transferring property to other family members' names in order to protect it in your bankruptcy can be considered fraudulent. The court looks at transfers made within the last two years of your filing date.
- Taking on a second mortgage or line of credit to pay for debt: If you are filing for bankruptcy, do not take a loan out on your real estate because you will have to pay it back. If you want to keep your home, we will work with you to identify your options.
At Vidmer Law Office, we want you to break free from your debt, and we have the knowledge and experience to help you do so. By educating you about your debt relief options and examining how each can benefit your circumstances, we can help you make the best choice for your finances and avoid mistakes that can hinder your debt relief.
To learn more about bankruptcy and how to prepare for your consultation, visit My Bankruptcy Appointment page.
Contact Vidmer Law Office Today
We invite you to contact Vidmer Law Office today at 270-908-0132 or visit our Contact page to schedule a free initial consultation with our lawyer to discuss your legal concerns. Our office hours are from 8 a.m. to 5 p.m. Monday through Friday, and evenings and weekends by appointment. We have two convenient office locations in Murray and Paducah, Kentucky.
