Common Bankruptcy Errors

Errors, misrepresentations and omissions may cause a bankruptcy case to be dismissed.

2012-11-30

November 30, 2012 (Press-News.org) Filing for bankruptcy is a complex process with specific rules that must be followed. Failure to follow the rules may cause a bankruptcy petition to be dismissed. When a case is dismissed, the debts are not discharged and the filer is back where he or she started - dealing with creditors, wage garnishment and financial anxiety.

Avoiding dismissal of your bankruptcy petition

A bankruptcy dismissal occurs if you fail to meet the requirements of the court. Some of the most common mistakes people make include:
- Failure to participate in pre-bankruptcy credit counseling: Before filing for bankruptcy, the bankruptcy law requires filers to take a credit counseling course. This requirement cannot be skipped. The credit counseling course is available online, is not time extensive and is affordable. It is virtually impossible to claim a bankruptcy filing had sufficient urgency that there was no time to get the required credit counseling prior to filing, so it is recommended that a potential client plan ahead, as the certificate is good for 180 days.
- Failure to provide the bankruptcy court with detailed information: The bankruptcy court is going to require a lot of documentation, including proof of income, proof of expenses, schedule of assets and a list of all creditors. The information required is comprehensive and full disclosure is mandatory.
- Failure to provide a tax return: In a Chapter 7 and Chapter 13 bankruptcy, the filer must provide the trustee with his or her most recent tax return.
- Failure to appear at the first meeting of the creditors: The filer is required to physically appear at the first meeting of the creditors, unless due to serious illness or for other good cause, such as military service, the court excuses attendance and the meeting may be held by written interrogatories.
- Failure to complete a debtor education class: In order for a person's debts to be discharged, he or she must complete a debtor education class and submit a certificate of completion to the court by a specific deadline.
- Filing the wrong chapter of bankruptcy: Chapter 7 bankruptcy has income and asset requirements. If a person attempts to file Chapter 7 and is not eligible for that relief, the court may dismiss the petition.
- Misrepresenting debts assets and income: It is extremely important for a filer to accurately represent his or her financial circumstances. Even an honest mistake may cause a case to be dismissed or an asset or cause of action to be forfeited.
- Failure to pay under a bankruptcy repayment plan: If a person has filed for Chapter 13 bankruptcy and has a scheduled payment plan, failing to make payments may have a disastrous result.

If a filer follow the rules and is transparent to the bankruptcy court regarding his or her financial situation, the filer should not have a problem.

Find an experienced bankruptcy lawyer to help you

The best way for a person to avoid bankruptcy mistakes is to have an experienced bankruptcy attorney guide him or her through the process. Because a bankruptcy lawyer is familiar with the rules and requirements, the attorney can help determine what type of bankruptcy is best for a given individual, help the person file correctly and handle any complications. A board certified bankruptcy attorney has at least 5 years' experience in the bankruptcy field, extra annual legal education courses to stay abreast of the law, and must pass a rigorous examination.

Contact an experienced board certified bankruptcy attorney in your area today if you have questions regarding filing for bankruptcy.

Article provided by Rothschild & Ausbrooks PLLC
Visit us at www.rothschildbklaw.com

ELSE PRESS RELEASES FROM THIS DATE:

Debt Collectors Illegally Trying to Collect on Fake Debts

2012-11-30

Some credit card companies have recently been accused of sending incorrect bills to consumers. The bills may be larger than what consumers actually owe. In some cases, consumers have actually received bills when they did not owe anything at all. The problem seems widespread, with consumers receiving incorrect bills from American Express, Citigroup and others. Attempts to collect fake debt violate the Fair Debt Collection Practices Act. Experts think this illegal collection process is occurring because banks sell bad loans to collection companies. These collection ...

New York Estate Planning: What is a QTIP Trust?

2012-11-30

The term "QTIP" is shorthand for qualified-terminable-interest-property trust, a legal vehicle used through which property of one spouse can provide lifetime income to the other, usually after the death of the first spouse, with significant tax advantages. QTIPs make sense for married people of substantial wealth who would otherwise be subject to estate taxes. QTIPs are often used in a second or subsequent marriage when a husband or wife wants to provide income for his or her spouse until death, but then would like that property to pass to children from a previous ...

$2.4 Million for Family of Sacramento Bus-Pedestrian Accident Victim

2012-11-30

On a January evening in 2008, 49-year-old secretary Joyce Ann Jacobs was run over and killed by a public bus in Sacramento, California. Almost five years later, in early November 2012, a Sacramento Superior Court jury saw fit to award her child and husband more than $2.4 million in damages for her wrongful death. Jacobs was a church musician, a foster mother and a community volunteer. Her husband, a Sacramento pastor, was awarded $2 million "in noneconomic damages for the loss of his wife's love and consortium," meaning companionship and affection. He also ...

Understanding How to Keep Your Home in Los Angeles After Bankruptcy

2012-11-30

When debts have become unmanageable, filing for bankruptcy protection may be the best option. It is an effective way for people to get back on their feet, because it offers a debt relief over a shorter time period than debt consolidation plans. It is often especially attractive to homeowners because eliminating other debt often frees up the funds necessary to keep the family home. It is important for homeowners to understand how bankruptcy impacts home ownership. Some homeowners may not realize that a lender can foreclose on a home even after the owner has filed for ...

New California Employment Laws Will Go Into Effect Soon

2012-11-30

California workers gained some protections in this year's legislative session. While not as many employment-related bills became law this year as the previous year, about 18 new laws will be taking effect. Social media privacy Perhaps the most publicized new law constrains employers from asking employees for password access to personal social media accounts, under most circumstances. The central issue is privacy. Counting California, only three states have such a law. Some have criticized the legislation, saying that there is really no need for the law, because ...

Distracted Driving in Texas: Teens Call For Stricter Laws

2012-11-30

After a person is injured in a motor vehicle accident, the first task is to secure medical treatment for immediately apparent injuries and diagnose the full extent of other problems such as back injuries and head injuries. Next, an injury victim may benefit from discussing the wreck with a personal injury lawyer to assess the reasons why the car accident happened. One cause of car and truck accidents that has received increasing attention over the past decade is distracted driving. While Texas has lagged somewhat behind other states in passing statewide cell phone and ...

Federal Government Offering Big Rewards to Financial Whistleblowers

2012-11-30

In the wake of the financial crisis, disturbing stories started to emerge about fraud and misconduct at some of the nation's largest financial institutions. For the most part, these abuses were brought to light by brave employees who had the courage to report inappropriate behavior to federal authorities. These so-called whistleblower claims are a very important part of the U.S. justice system. Often, employees are in a much better place to detect misconduct than law enforcement officials or regulators are. Of course, bringing a whistleblower claim has its risks: ...

Enforcement of Child Support in Florida

2012-11-30

Children, although as wonderful as they may be, can often be expensive. Supporting a child on two incomes is difficult enough. However, when parents are divorced or never married, supporting children on one income can sometimes seem almost impossible. To help mitigate these effects, a system called child support was created. Child support is a payment made by the non-custodial parent to help with the daily expenses of raising a child. It is becoming more and more common that these payments are being avoided by the non-custodial parent, and custodial parents need to take ...

Planning for the Future - How to Ensure Your Estate Can Find Crucial Information

2012-11-30

For some people, it can be difficult to take the first steps toward making a plan that would carry out their wishes after they pass away. No one knows exactly how much time he or she has before these documents will become necessary. Putting these directions and wishes on paper can help ensure that these wishes are followed, and that the things that are being handed down go to the proper individual. While dealing with the loss of a loved one is a very challenging time, families will often have other concerns to deal with after the passing. In order to carry out the deceased's ...

Sheriff's Department Receives Grant to Fight DUI

2012-11-30

Arizona has long taken a tough stand against drunk drivers. Police plan aggressive sobriety campaigns within the region, which can catch many motorists off-guard. Once arrested, an individual may not know what to expect. The penalties that may result in the event of a conviction may have life-changing consequences. The holidays have often been a very busy time for law enforcement officers patrolling for drunk drivers. Recently, the Pinal County Sheriff's Office received a grant from the Arizona Governor's Office of Highway Safety to help take drunk drivers off of the ...

Gene Brown, MD, RPh, announced as President of the American Academy of Otolaryngology-Head and Neck Surgery and its Foundation

SNU researchers develop innovative heating and cooling technology using ‘a single material’ to stay cool in summer and warm in winter without electricity

SNU researchers outline a roadmap for next-generation 2D semiconductor 'gate stack' technology

The fundamental traditional Chinese medicine constitution theory serves as a crucial basis for the development and application of food and medicine homology products

Outfoxed: New research reveals Australia’s rapid red fox invasion

SwRI’s Dr. Chris Thomas named AIAA Associate Fellow

National Collegiate Athletic Association (NCAA) funding for research on academic advising experiences of Division I Black/African American student-athletes at minority serving institutions

Johri developing artificial intelligence literacy among undergraduate engineering and technology students

Boston Children’s receives a $35 million donation to accelerate development of therapeutic options for children with brain disorders through the Rosamund Stone Zander and Hansjoerg Wyss Translational

Common Bankruptcy Errors

ELSE PRESS RELEASES FROM THIS DATE:

LAST 30 PRESS RELEASES: