While filing for bankruptcy could be a solution to most of your debt problems, it could be a source of your misery. Some people don’t know how they should behave during the bankruptcy filing process. It is good for people to know that shortcuts in bankruptcy have led many people into regrettable problems. According to any competent bankrupt attorney, one should be careful and avoid making transfers. Transfers are done with an evil motive of concealing assets. When a court discovers that you have made transfers, you become a fraud victim. Your bankruptcy attorney should discourage you from doing so since they know the painful consequences that follow. Here are some transfers that may get you in trouble:
Change the name of your bank accounts
Being investigated for bankruptcy is something most people fear most. If the trustee and creditor find you have money in various bank accounts, they may apply to object your bankruptcy. When some people intend to apply for bankruptcy, they remove their names from the bank accounts. Others change their names into names that don’t exist. While both of these options are risky in nature, some people still follow them with the aim of enjoying safety.
Avoid your name in business ventures
Although some people file for bankruptcy on genuine reasons, others do so just to avoid the several creditors who give them sleepless nights. This doesn’t mean they don’t have some money to reduce the debts. It’s only that they want to venture into some other businesses or invest elsewhere without the knowledge of their creditors. For this reason, they register their new businesses with other people’s names. Before you decide to remove your name from the business, you already own, seek advice from a bankruptcy attorney.
Inappropriate fund deposits
When some people learn they are being investigated for bankruptcy they had filed, they transfer the money to their bank accounts into the bank accounts of others. If you are caught doing so, the case would be worse. Once you have filed for bankruptcy, your money should remain in your bank accounts. Depositing your money into the bank accounts of others is termed as fraud in court. This would not only make the case worse, but it would also attract hefty penalties on your side. Get proper guidance from your Houston bankruptcy lawyer on how you should go about it.
Today people are changing titles to that of their spouses or children. It is true these are members of your close family unit, but you shouldn’t use their titles with a bad motive. Whatever comes with your name and title should remain so. If you are “Mrs”, you shouldn’t change the title to “Miss.” This would mean someone else other than you is responsible for the incurred debt. When this happens, your bankruptcy attorney may have harder time in court in connection to this mistake.
Making random transfers during a bankruptcy case is your worst enemy. You may never achieve what you think you would achieve through such transfers without the assistance of Houston bankruptcy attorneys. If anything, things may even get tougher than they would be if no transfers were made. If there is any valid transfer you have to do during bankruptcy, your lawyer should be aware of it and probably assented to it upon serious considerations.