When my husband I decided to start a business, we didn't think about the legal aspects of doing so. We didn't realize that purchasing business insurance, getting building permits and making investments all required some type of legal advice. But after speaking to a close friend, who also happens to own a small business, we contacted a business attorney. Now, we have the legal smarts to make the best decisions for our business, as well as the legal representation in case something happens to our company. I hope that you find my blog helpful and informative for your own business. It's a great resource for finding the legal advice, resources and guidance you need to get your company up and running.
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Three Mistakes You Don't Want To Make When Filing For Bankruptcy
Ronnie Mills
The legal requirements of filing bankruptcy can be complex, and it can be tough to navigate the process on your own. If you want to ensure that your bankruptcy filing has the best chance of success, you should consider retaining the services of a bankruptcy attorney. After all, a successful bankruptcy filing provides you with the chance to start over financially. There are a few things that could happen along the way that could lead to having your bankruptcy claim denied. Here are three of the things you should be concerned about. Talk with your attorney about these things and develop a plan to deal with them if it proves necessary.
Your Bankruptcy Filing is Challenged
When you file a Chapter 7 bankruptcy, your goal is to have all of the debts discharged. When that happens, it means you don't have to pay the balances that remain on those accounts. In those cases, the court issues an order prohibiting those creditors from trying to collect from you. If one of your creditors believes that there is a reason why you shouldn't be awarded the bankruptcy, he or she can challenge it. If the individual challenging the filing has reasonable evidence to justify their position, it may mean that your bankruptcy is rejected.
There are a few situations where a bankruptcy may be challenged by a creditor. For example, if your creditor believes that you've done something fraudulent when you filed the bankruptcy claim, he or she can contest the filing. One such issue could be if your creditor can prove that you've hidden assets, obtained a new credit account or misrepresented your financial position.
The best way to avoid this type of problem is to ensure that all of the information you present is accurate and that you approach the application process completely legally. Working with a bankruptcy attorney can help you do this.
You Didn't Pass the Means Test
One of the things that you're required to prove when you file Chapter 7 is that you meet the court's financial requirements. The courts need to see that you don't have the financial means to pay the bills that you're claiming on your bankruptcy filing. The court's means test evaluates the expenses that you have along with your income. The difference between the two is your disposable income. If the courts determine that you have enough disposable income to make payments, your Chapter 7 filing will be denied. A bankruptcy attorney can help you evaluate your expenses to determine whether or not you'll be eligible.
You Left Out Your Tax Records
The courts need to evaluate your most recent tax statements as well as your current withholdings before making a determination about your case. These records show crucial information about your ability to repay your debt. If you misrepresent your tax information and don't have the reports to support it, the courts may deny your filing.
Additionally, there are some strict regulations surrounding how to handle tax returns when you're filing for bankruptcy. If you recently received a refund, the courts may consider that money as part of your financial means. It could disqualify you under the means test. Your bankruptcy attorney will help you understand how to handle any current filings as well as your future refunds.
These are three of the most common mistakes made when filing for bankruptcy. By understanding them and how they affect your filing, you'll be in a better position to avoid them when you do file. Work with a bankruptcy attorney to create your bankruptcy filing so that he or she can help you support your case with the proper information. You can also visit sites like http://www.wflaw.net to learn more.
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