When you are going through the bankruptcy process, there are many things that will be expected from you. However, there are also many things that you should avoid doing. Bankruptcy lawyers will always tell business owners that there are certain things that they should not do and things that they should be careful with. Even in cases where you believe that you are acting with the best intentions, the courts might see this as potential fraud. As such, you should always speak with an attorney to find out what is expected from you.
Never Transfer Your Money Around
When you file for bankruptcy, you want to always keep track of where you move your money around. There are many business owners who send money to friends and family on a regular basis. You may think that these are just your normal, everyday actions but from a court’s standpoint, this looks like obvious fraud. You could find that you are unable to move forward with the bankruptcy process or that you could be charged if you are caught doing this while filing.
An attorney will tell you that, from a legal perspective, it looks like you are trying to find money that could be a part of your repayments and bankruptcy action when you start to move money around. If you have less money or have made it look this way, it might look like you are trying to get a better deal out of bankruptcy, even if you have done so illegally. There are many things that you must consider now that you are going through this process.
Never Re-Title Your Assets
When it comes to the physical assets that you already own, you want to avoid re-titling your assets. If your assets are valued below a certain amount, you will usually get to keep the asset. If you re-title something and then try to give it to a family member or friend in an attempt to keep it, this will be seen as fraud. Bankruptcy courts will typically want to take physical assets as a way to settle your debts and not being upfront about these matters can put you and your entire bankruptcy at risk.
Speaking with a Bankruptcy Attorney
So, why is it incredibly important to have a bankruptcy attorney on your side? Bankruptcy attorneys will tell you to tread carefully and guide you through this process so that no mistakes are made. The best attorney possible for you will ensure that you take the right steps with your money so that you can avoid these risks and make it through the process unscathed.
If you are attempting to file for bankruptcy, the skilled attorneys at MJ Watson & Associates are willing to help you through this challenging time. Our knowledgable bankruptcy attorneys will make sure that you get the most out of your case and never miss any of your filing deadlines. We will help you avoid fraud and protect your business during this difficult time. Please contact our attorneys in Texas as soon as possible at 817-877-2861.