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The best personal bankruptcy advice is provided by practicing
attorneys. They should be familiar with local practices, court rules,
and tendencies of local judges and trustees. Even then, with the
assistance of a talented lawyer, debtors may be limited if forced to
file within a few days or weeks to prevent foreclosure, repossession, or
other judicial collection or enforcement of judgments. In the best
circumstance, a debtor should also take advantage of many options and
opportunities to maximize assets retained, discharge a higher portion
of debts, and eliminate potential problems.
How To Avoid Personal Bankruptcy Problems
The Code provides specific debts and circumstances which are presumed
abusive. Debtors may not play free and lose with assets before filing.
Transactions within the 30 days before filing are subject to the highest
level of scrutiny and most burdensome penalties. Financial transactions
completed more than 30 days, but within one year of filing, are reviewed
with a somewhat lower standard of review. Most often, transactions that
are more than one year old are not subject to adverse presumptions.
The effect of this tiered approach creates greater opportunities for
debtors who plan their Chapter 7 or Chapter 13 case well before filing.
Also be aware, the Statement of Financial Affairs required in all cases
specifically inquires about all attorney fees paid during the one year
before beginning the case. Trustees and courts tend to raise a
suspicious eye if a debtor paid attorney fees for Chapter 7 and Chapter
13 advice on several occasions throughout the year.
More bankruptcy information about personal issues:
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