THINGS YOU NEED TO KNOW ABOUT BANKRUPTCY Consult with your lawyer sooner rather than later. Generally these consultations are free. The lawyer can steer you in in the planning and timing of the filing of your bankruptcy case in a manner that is most beneficial to you. Some of the things that the lawyer will advise you are as follows:
Donít take cash out of your retirement accounts such as your IRA for your 401(k). These accounts are exempt, and therefore are protected from all creditors. If you cash these in, you will incur a tax which will not be dischargeable in bankruptcy.
Donít pay loans from family members before filing bankruptcy because these payments may be set aside by the bankruptcy court. If you want to, you can pay them after bankruptcy.
Don't try to hide or transfer your assets when you run into financial trouble. This is called a fraudulent conveyance, and it can have very serious consequences. If you are considering such a thing, it is important that you consult your lawyer in advance of any action you might take in this regard.
Donít try to pay unsecured debt, like credit cards, when your income drops or you lose your job. This is just like throwing your money away. As a rule, you should keep paying your secured creditors such as your mortgage on your house and your car.
Because of the very generous federal exemption law it is rare that anybody lose any of their property.
You will be inundated with offers for credit cards and car loans after bankruptcy.
In the overwhelming majority of cases, you are able to keep your cars, and your home as a long as you make your payments.
You can pay any creditor that you want to after bankruptcy.
Bankruptcy terminates the calls from creditors and attachment of your wages.