If you are an individual or business with mounting unsecure debt like credit card debt, signature loans commercial leases or medical debt to name a few, a chapter 7 can help by discharging or wiping out the debt. In some instances you can even wipe out IRS debt. The automatic stay afforded to individuals and businesses under chapter 7 stops garnishments, lawsuits, foreclosures and repossessions. It also prevents creditors from contacting you. If a creditor violates this right, you can sue and seek actual and punitive damages. If you are thinking of filing for chapter 7 here are a few tips:
1. Do not use your credit cards to purchase or transfer balances. This might cause the creditor to file a lawsuit against you for fraud.
2. Do not pay off credit card debt so that you would not have to list the creditor in your bankruptcy case. The creditor can ultimately find out of your bankruptcy filing and cancel your card privileges anyway.
3. Do not cash in your retirement prior to filing. Your retirement is a protected asset and cannot be seized by the trustee.
4. Do not transfer any property, real or personal, to anyone. This will be seen as a fraudulent transfer and the trustee can sue the receiving party and get the property back.
5. Do not pay back debt to family or friends as the trustee can sue them and get back the funds.
6. Do not ignore pending lawsuits.
If you find yourself a creditor in a bankruptcy case let me help you protect your position and collateral by objecting to a debtor's chapter 13 plan; filing a motion to lift the bankruptcy protection so that you can pursue recovery of your collateral; file a proof of claim so that you are assured of receiving monies if funds are available or filing an adversary to deny the debtor a discharge of your debt or deny the debtor a discharge of the bankruptcy all together. Remember your position in any bankruptcy case is time sensitive so do not hesitate to contact me or else you could be left with nothing at all.