What Not to Do Before Filing Bankruptcy in Atlanta: Insights from Cherney Law Firm

What Not to Do Before Filing Bankruptcy in Atlanta: Pre-Filing Mistakes to Avoid


Pre Filing Mistakes to AvoidThe decision to file for bankruptcy in Atlanta not only promises a fresh start but also demands a mindful approach. When you choose to file bankruptcy, it’s important to understand things like the bankruptcy lookback period and how your actions prior to bankruptcy can affect your bankruptcy filing. 

When seeking debt relief, you may try to take matters into your own hands. Unfortunately, even the best intentions to improve your money situation can cause bankruptcy issues. Seeking guidance from bankruptcy attorneys early on can be vital.

At Cherney Law Firm, LLC, we understand the gravity of these decisions on your bankruptcy petition and the importance of acting prudently. Our bankruptcy attorney helps guide our clients early on, making prudent decisions and how to avoid common missteps.


Understanding Bankruptcy Basics


Filing bankruptcy can be a path to financial freedom for those overwhelmed by debt. Bankruptcy in Georgia is a complex process. Individuals may struggle to know where to start, from bankruptcy filing to bankruptcy court. 

Filing Bankruptcy: Chapter 7 or Chapter 13

Types of bankruptcy are defined by their chapter. Chapter 7 and Chapter 13 are commonly used bankruptcies, each with its own requirements and benefits. Eligibility hinges on the results of the bankruptcy mean test, which examines your expenses, income, and debts to determine if you qualify for Chapter 7 or Chapter 13.

  • Chapter 7: Chapter 7 bankruptcy, also known as liquidation, is for individuals with limited income. It discharges most unsecured debts after a trustee sells certain nonexempt assets, and the proceeds are distributed to creditors. 
  • Chapter 13: In contrast, Chapter 13 bankruptcy establishes a repayment plan, usually three to five years. For those earning a steady income, debtors can keep their assets and pay off debts over time. 

Understanding bankruptcy and making the right choices before filing your bankruptcy petition is crucial. Tax returns, pay stubs, and a comprehensive statement of financial affairs must be submitted to validate your financial situation. Bankruptcy paperwork must be meticulously filled out, including a schedule of assets and debts, a list of exemptions, and a means test if necessary.

Taking on new debt or making large payments to select creditors before filing can lead to allegations of favoritism or fraud. Selling or transferring substantial assets for less than fair market value or running up credit cards on luxury goods shortly before filing could also imperil the process.

Bankruptcy carries significant, long-term implications. Seeking consultation from professionals, like those at Cherney Law Firm, LLC, located in Marietta, can be vital in navigating this intricate legal procedure. Correct guidance can be critical to emerging from bankruptcy with a fresh financial start.


Common Mistakes to Avoid Before Filing


Common Mistakes to Avoid Before FilingNavigating bankruptcy demands vigilance against missteps that could complicate the process. A bankruptcy case should be approached with strategic foresight, ensuring that our actions do not inadvertently trigger legal backlash or accusations of fraud.

Avoid Fraudulent Activities

Engaging in fraudulent activities before filing for bankruptcy can severely jeopardize your bankruptcy proceedings. Such activities include:

  • Transferring assets: Shifting property or money to friends or relatives to conceal them from the court.
  • Hiding assets: Not disclosing all assets in your bankruptcy filings is a form of deception.
  • Insider transfers: Transferring assets to business associates or family at less than market value.

Other activities, such as making large or luxury purchases or liquidating a retirement account, can also cast suspicion on your bankruptcy filing and create financial risks. Before making financial decisions, consider consulting a well-versed legal practitioner in bankruptcy cases.

Legal Implications and Consequences

The legal fallout from committing bankruptcy fraud is severe. If any of the above actions are discovered, it could lead to:

  • Bankruptcy fraud charges: These carry significant penalties, including fines and possible imprisonment.
  • Denial of discharge: The court may deny the discharge of your debts.
  • Asset seizure: The trustee may recover concealed assets through fraudulent transfer actions.

Individuals must complete mandatory credit counseling, abstain from making false statements about their financial situation, and, if receiving an inheritance, discuss the timing of their Georgia bankruptcy with their attorney. Doing so can help safeguard your financial future and ensure a smoother bankruptcy process.


How Cherney Law Firm, LLC Can Help


How Cherney Law Firm, LLC Can HelpWhen you are struggling with debt, you may be unsure and need help figuring out where to turn. At Cherney Law Firm, LLC, we are here to guide individuals through the complexities of bankruptcy in Georgia, ensuring a structured and informed path toward financial stability.

Navigating bankruptcy in Atlanta can be daunting, but with the right legal aid, it becomes a journey toward relief and a fresh start. As your bankruptcy attorney, we strive to provide a lifeline, offering free consultations to understand your unique situation.

  • Personalized Approach: We believe every case is different, and so are the solutions. Our tailored advice is aligned with your specific circumstances.
  • Atlanta Bankruptcy Experience: Our deep knowledge of federal bankruptcy laws and the local bankruptcy court helps us easily maneuver legal intricacies.
  • Prevent Costly Mistakes: Mistakes in the bankruptcy process can be detrimental. We help you avoid these pitfalls, such as selling assets incorrectly or incurring new debts.
  • Educational Support: With our thorough understanding of bankruptcy chapters, we help determine an appropriate course of action.

When considering filing for bankruptcy in Atlanta, one should remember not to incur new debts or make large withdrawals from retirement accounts. Every financial move should be carefully evaluated, as the implications can be significant. A well-timed consultation with a bankruptcy professional can help navigate these complexities.

At the Cherney Law Firm, our bankruptcy lawyer is committed to helping you face the challenges of filing for bankruptcy. We will be with you every step of the way, transforming these difficult times into opportunities.


Filing for Bankruptcy? Contact Us Today 


At Cherney Law Firm, we know that filing bankruptcy is more than solving money troubles. It is about securing your future. 

We know how prior actions can significantly influence the outcome of a bankruptcy case and are here to provide you with guidance early on. Our bankruptcy lawyer will advise you on making financial decisions in the months and days leading up to your Georgia bankruptcy. If you have already filed bankruptcy, we are here to provide reassurance and take steps to mitigate any concerns. 

The path to bankruptcy involves critical decisions, each with potential legal repercussions. As such, it is paramount to gather sound advice from a reputable bankruptcy attorney. Contact us today for a free consultation and receive tailored advice for your situation.

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