Many people try to avoid going bankrupt, but sometimes it’s unavoidable. This is because life has many expenses, and sometimes they get the best of us. When this happens, it’s best that you have a New York real estate lawyer help you throughout the process. Although they’ll handle all of the ins and outs for you, it’s also important that you’re prepared. The first thing to note is that there are different types of bankruptcy. In Chapter 7 Bankruptcy, you have to use the liquidation process to pay off as much debt as possible. The Chapter 13 Bankruptcy, on the other hand, is reorganization bankruptcy, meaning you use a payment plan to repay your debt. Although both options have their own set of rules, there are general rules that you should know about as well.
You Can’t Withhold Debt
When you apply for bankruptcy, you have to tell the court about every debt that you have, from credit cards to business loans. This is because this debt impacts your overall financial situation, and it’s better to be honest from the beginning.
You Can’t Withhold Assets
It may be tempting to withhold assets as an attempt to save them, but this isn’t a good idea. You should list all vehicles, bank accounts, real estate, and everything else in between. You should even list the things that you know are exempt, such as your primary car.
You Shouldn’t Purposely Increase Debt Before Filing
Some people think that just because they’re filing for bankruptcy, that they can overspend on things that cannot be returned, such as food or experiences. If this is done intentionally, then it is considered a crime on the federal level.
Always Tell the Truth
The biggest rule is to always tell the whole truth about your situation. This is because your debt, income, investments, and assets are all important information when it comes to resolving your situation.
If you’re considering filing for bankruptcy, don’t do it without the help of a New York real estate lawyer. For more information, contact Gary Wachtel.