A person in desperate financial circumstances will take desperate actions to stave off bankruptcy. They will often seek advice from people they know about what to do. Typically, this advice is wrong and/or half-right. You should seek the advice of a bankruptcy attorney before you take any action with your property and money. The advice you receive may save you money, reduce stress, and eliminate unnecessary court proceedings. You and your attorney can create a plan of what to do and when to do it. Before seeing a bankruptcy attorney, you should not do the following:

1. Close all your bank accounts and convert all your deposits into cash.
2. Transfer your property, such as a car or boat, into another person’s name.
3. Transfer your home or real estate into another person’s name.
4. Pay off debt owed to relatives, friends, or business partners.
5. Give your property away to someone or a business.
6. Hide any property. (The bankruptcy trustee assigned to your case will find the property and there will be serious consequences)
7. Withdraw or cash-in retirement savings, 401(k) plan, 403(b) plan, or IRA.
8. Take out a second mortgage on your property to pay down debt or other expenses.
9. Grant a lien against your property.
10. Incur new debts before filing. (Ex: Do not max out your credit cards with intent of filing a bankruptcy and then see your attorney).
11. Withhold any debts from your attorney. You cannot save a debt from bankruptcy. All debts must be included.
12. Hide anything about your income, expenses, and finances. Your attorney should know everything about your finances. This will eliminate any surprises or unnecessary circumstances in your case.
13. Hide any information about a personal injury claim, pending lawsuit, inheritance or life insurance proceeds from your attorney.

Bankruptcy works best when you disclose everything to your attorney, creditors, trustee and Court. Non-disclosure, gamesmanship and lack of candor creates litigation, stress, and serious legal consequences. You are always better off over disclosing information.

To see if you qualify for this relief and discuss your options, you may contact C. Scott Kirk of C. Scott Kirk, Attorney at Law, PLLC at 252-689-6249 or scott@csklawoffice.clarencewebdesign.com. Please visit csklawoffice.com. C. Scott Kirk, Attorney at Law, PLLC proudly serves clients in Greenville and throughout Eastern North Carolina.

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