Are You Heading Towards Bankruptcy? Avoid these five big mistakes.

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The legal industry, as you’ve certainly heard, is going through a significant shift. You may have even thought about making the switch as a career, but did you know there are so many options? It doesn’t matter if you want to be an attorney or if you just need one.

A bankruptcy attorney is a seasoned attorney that assists individuals and corporations in resolving financial difficulties, such as company and credit card defaults, loans, and medical expenses. They are also known as liquidation and relief lawyers. An experienced bankruptcy lawyer can assist you in filing for bankruptcy and reducing your debts. Maor Levi is the one you seek advice here’s the link עורך דין פשיטת רגל בנתניה

It’s not every day that you have to file for bankruptcy. Choosing to submit a tax return is a huge step, and you want everything to go as smoothly as possible.

When it comes to filing for bankruptcy, here are five things you should avoid:

  1. Putting it off until a later date. Now that you’ve decided to file for bankruptcy, there’s no time to waste. If you wait any longer, your debts will continue to grow, and you may face consequences including as harassment from creditors and wage garnishment.

  2. Keeping some of your assets out of the public eye. To avoid bankruptcy, do not send money to relatives or friends for safekeeping before you file, even if you have another bank account. If you try to hide your assets, you run the risk of being fined or perhaps sent to prison.

  3. The failure to include creditors. You must mention all of your creditors when submitting a bankruptcy petition. That particular obligation will probably not be discharged if you omit a creditor from your list of creditors

  4. Excessive use of credit cards. Some people believe that going on a spending spree soon before submitting a bankruptcy petition is perfectly acceptable. You should not imitate their behavior. Credit card purchases that appear in the last hours of a billing cycle aren’t always subject to cancellation. It’s time to give up using your credit cards.

  5. Repaying debts owed to one’s family. Including a financial commitment to a family member in your bankruptcy may not be in your best interest. Before filing for bankruptcy, it is possible to pay off a “preferential” debt, which the trustee may reject. Consequently, your family member would have to reimburse the trustee for this money.

As soon as a company can’t meet its financial responsibilities, it files for bankruptcy protection. All of the company’s outstanding debts are tallied and paid out, if not in full, from the company’s assets in the filing of a petition with the court.