Are you thinking about filing bankruptcy? If so, consult a Bankruptcy Lawyer in Lakewood WA. There are many schedules that must be completed before filing. The schedules include information such as the debtor’s income, a list of assets and the creditors. The lawyer helps clients complete the forms properly because the court may think the debtor is being deceptive if errors are found.
Filing For Chapter 7
Many debtors think filing Chapter 7 is easier than Chapter 13. Chapter 7 is a liquidation bankruptcy and debtors do not have to pay money out of their pockets. Rather, the bankruptcy trustee sells some of their assets and divides the money between creditors. However, a Bankruptcy Lawyer in Lakewood WA advises clients that it’s not that easy.
Eligibility Requirements For Chapter 7
Chapter 7 filers must pass the means test. The trustee looks at schedule I, income and schedule J, expenses. If the debtor has a certain amount of money left over, the trustee will recommend filing Chapter 13. Chapter 13 filers make a monthly payment to the court for three to five years.
Other Rules And Regulations
Individuals may not file Chapter 7 within six months of the court’s dismissal of another bankruptcy for certain reasons. For instance, one cannot file if they violated a court order. Further, filing is barred if the court says the bankruptcy was fraudulent. Finally, debtors cannot file if they tried to dismiss their case after a creditor filed for relief from the automatic stay.
What Activities Are Considered Fraudulent
There are several activities that the court deems as fraud in a Chapter 7. For instance, a debtor cannot put property in someone else’s name to hide ownership. Further, the trustee will scrutinize the sale of any assets. Some people try to get rid of property by selling it for less than it’s worth. Indeed, many unscrupulous individuals charge a lot of merchandise on credit cards thinking they will not have to pay the bill.
When a debtor signs a bankruptcy petition they are swearing the information is true. Violating the rules could result in federal prosecution. Listen to the bankruptcy lawyer and use the process to get a fresh financial start. Schedule a consultation before you file.