Filing For Bankruptcy? A List Of DONT’S Pt. 2
Don’t pay back family members. The thing is that they can not be treated any differently than other creditors. As far as the law is concerned, relatives have the same legal status as every creditor that you owe. Therefore, relatives can not be treated differently than all of the other places. I know that stinks, but it’s the law.
Do NOT liquidate your retirement account! They are typically exempt property in a bankruptcy regardless of what chapter you file, so it is not necessary to do this. Some people liquidate and still owe huge amounts of money, and if you withdraw these funds early that makes you fully liable for penalties and taxes which might not be discharged in the bankruptcy.
Don’t transfer property out of your name before you file bankruptcy. This action can be undone if a fair price isn’t received, or if it were made with intent to defraud, delay, or hinder a creditor. Friends and relatives fall into this category too.
Do not utilize your equity line of credit to pay off your the money you owe. Under most federal and state law, you will have the option to claim exemption for the equity in your home. So you can go through bankruptcy and still be able to have this equity.
So basically, if you use your equity line to pay off money you owe or to take out a second mortgage, you will for the most part be converting debt that would have been discharged in bankruptcy into debt which you will still need to pay so you can hold on to your home.
And one last do: Always speak to your attorney with honesty and make them fully aware of all of your concerns. Courts take their rules seriously and have the ability to file criminal charges if intention fraud is committed. And even if they don’t go that far, they can refuse to discharge a particular debt, or simply dismiss the entire case.
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Two Top Prosecutors Go After Debt Collection Agencies
It was revealed in recent news that top legal prosecutors in Washington and Louisiana announced actions they had taken against accounts receivable management firms and their owners and managers.
Louisianian attorney general James Caldwell made the announcement on Friday that his office had obtained injunctions against two collection companies and their managers. On the same day, Rob McKenna, Washington’s Attorney General stated that his office had settled charges with a collection company that had promised to stay on the straightened arrow. In a press release, Caldwell’s office said that in late December they had obtained an injunction against Bush and Kennedy, Inc, a Baton Rouge based collection agency. The order he won placed restrictions on the business, banning them from operating further, and specifically, ordered that two of the firm’s principals, Quay W. Pattott Jr, and William S. Fesguson were banned from conducting business together.
Late last week, a judge slammed Ferguson and Parrott with added injunctions as per the request of Caldwell’s office. Ferguson is banned from using unfair and deceptive practices and acts at his current place of business, Franklin, Grant and Associates Incorporated, a collection company based out of Metairie Louisiana. Parrott is completely restricted against conducting any new business at his new place of work, Metairie based Halsey and Associates, LLC.
In Washington, McKenna’s office stated that Topco Financial Services Inc, a Washington based collection company agreed not to harass, curse out, or threaten consumers as part of a settlement. The collection company must pay around $38,000 in legal fees and penalties. An additional $82,000 in fees and penalties were suspended pending that the company agrees with the settlement terms.
As per the agreement, Topco is restricted from harassing, intimidating, threatening and embarrassing debtors, including using profanity. They are banned from implying that failure to pay a delinquent bill will result in suspension, a revocation, or impairment of the debtor’s driver’s license. They are no longer allowed to threaten debtors with impairment of their credit rating. However, the company is allowed to legally report debts to credit reporting agencies.
Mallory Megan is employed by a debt collection company. Also she composes articles on business and finance, consumer spending and collection agencies. Get a totally unique version of this article from our article submission service