10/18/2013
The Real Question should be:
WHAT SHOULD I NOT DO ONCE I KNOW THAT I AM IN FINANCIAL TROUBLE !!!
Once
you know that you are in financial trouble, you should immediately
speak to your accountant, financial planner/counselor and an attorney,
preferably one that practices in the area of Bankruptcy and Asset
Protection. You should contact your creditors and see if they can assist
you in any way. For example, Credit Card Companies may defer some
payments and/or reduce the interest rate or the monthly minimum
payments. Similarly, your mortgage company and the car loan company may
defer some payments, offer you a loan modification, forbearance, etc.
Consult an attorney whenever you are making any changes to the ownership of any of your assets.
Here are some things that you should not do.
1. Don't hide from your creditors. Correspond with them on your own or through a lawyer.
If you are planning to file a Bankruptcy, do not do any of the following:
2.
Do not make excessive contribution to an IRA or 401K. In fact, I
suggest that you stop contributing to a 401K at least 3 months before
the actual filing of the Bankruptcy Petition.
3. Stop paying your 401K Loans immediately.
4. Do not pay debts owed to relatives and family members (two year rule).
5. Do not make excessive payments to one or more particular credit cards. (90 day rule)
6. Absolutely, do not charge up your credit cards or borrow money for anything at all.
7. Do not make any large purchases (food, groceries, medicine and necessities are okay)
8. Absolutely do not take cash advances on your credit cards.
9. Do not make excessive payments towards your mortgage or car.
10.
Do not sell, transfer, or give away any assets for less than their fair
market value. (The Trustee will sue you under the one year rule or
under the 4 year rule, the Uniform Fraudulent Conveyance Act, under
Florida Law). For example If you own a car outright and it is worth,
let’s say $5,000.00, just transferring the title to a relative or friend
is not going to protect it. The Trustee will sue you and your relative
or friend and get the car back, and then he will object to your
Discharge too. It is better to sell the car to a complete stranger for
$5,000.00, put the money in your bank account and write checks to pay
your daily and necessary household expenses. In Florida, a home is
exempt (up to certain limitations), and taking a non-exempt asset, like
the car, and making it exempt by paying your mortgage down is not
against the law, unless you are doing it with the intent to defraud your
creditors. Bankruptcy planning is legal and allowed. Note: Transferring
an asset of value to your Wife is also a Fraudulent Transfer.
11.
You must keep a minimum amount of money in your bank account on the
date of the filing. This does not mean you should withdraw money in cash
from your bank account and hide it under the mattress. This is fraud.
Instead, go to the bank, make money orders or cashiers checks to FPL,
Water, Mortgage, Insurance, and send them to these companies
immediately. The Bankruptcy Trustee will examine your bank statements
and the balance in the bank on the date of filing. If the bank statement
shows that you had $2,000 in your bank account on the day you filed,
then that is what the Trustee will look at, and demand you turnover this
money to him or her within 10 days. Your explanation that you have
written checks to the mortgage company, etc., but that the checks have
not been cleared yet will not be accepted. The Trustee does not care
that the checks have not been cleared.
12. If you have
non-exempt assets, be prepared to surrender them to the Trustee
immediately or pay for them in full and buy it back from the Trustee, or
file a Chapter 13 Bankruptcy or do not file a Bankruptcy at this time.
Sometimes it is better not to rush into Bankruptcy.
13. Transferring assets to a Trust does not protect it from the Bankruptcy Trustee. Bankruptcy Trustee's have powers to avoid such transfers.
Elias Leonard Dsouza, Esq.
"The best compliment you could ever give me is a referral."
A CONSUMER RIGHTS PROTECTION LAW FIRM
"Life is Short. Get Rid of Debts"
111 N. Pine Island Rd., Suite 205
Plantation, Florida 33324
Phone: 954-358-5911
Fax: 954-357-2267
www.DsouzaLegal.com
Skype: elias.leonard.dsouza
Skype: 954-762-7608
Http://Facebook.com/Elias.Leonard.Dsouza
Blog: http://dsouzalegal.blogspot.com
Attorney Elias Leonard Dsouza concentrates his practice on Bankruptcy
[Chapter 7, 13 & 11,] Foreclosure Defense, Defense of Credit Card
Lawsuits, Credit Restoration, and Debt Settlement & Credit
Counseling and Landlord-Tenant law. We Sue Debt Collectors under the Fair Debt Collection
Practices.
MY MISSION:
I
am very passionate about helping consumers protect their rights,
reorganize their debts, help them keep all or most of their property,
save their homes from Foreclosure, stop wage garnishments, and assist
people to “get a fresh financial start”. I am available to assist and
advise you on how to rebuild your credit and buy the new house or start
the new business that you always wanted to. This is a small law firm,
and as such, can and does provide personal service, quality
representation, and excellent follow up. If you would like to learn more
about your options, contact me as soon as possible for a FREE
CONSULTATION.
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