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Top Ten Bankruptcy Mistakes: Continuing to use your Credit Card

TOP TEN BANKRUPTCY MISTAKES

#3
Continuing to use Credit Cards

The Bankruptcy Code is designed to give the honest debtor a second chance and to treat all creditors in a fair and uniform manner. One problem which arises is the situation where the debtor continues to use credit a short time before filing a bankruptcy. Under such circumstances it can be argued that this is abusive to a particular creditor.

Therefore, certain consumer debts and cash advances incurred at 90 and 70 days, respectively, before filing maybe deemed to non-dischargeable. The ultimate goal of bankruptcy is discharge of debts and so non-dischargability is to be avoided. In addition, to the non-dischargeable aspect of these items it can also create a great deal of additional legal expenses to you. That is because a creditor’s claim for non-dischargability will likely require a response from your legal counsel and additional charges will apply.

A Debtor does have a defense that if the goods and services acquired were “reasonably necessary for the support and maintenance of the debtor or a dependent of the debtor” that they are still dischargeable. However, all of this takes time and money to argue.

As a rule therefore, put those credit cards away at least 90 days before filing your case. Otherwise, you may be in for an objection to your discharge and a finding by a judge of non-dischargeability. Even if the survive these allegations you will be incurring a great deal of needless expense.

[Guy Vining, a bankruptcy attorney, in metro-Detroit, maintains his office in Taylor, Michigan where he serves the downriver communities of Monroe, South Rockwood, Gibraltar, Brownstown Township, Grosse Ile, Woodhaven, Trenton, Southgate, Riverview, Allen Park, Lincoln Park, Dearborn, Dearborn Heights, Westland, Wayne, and Ecorse. If you or a family member of friend would like a no-obligation no cost consultation/financial analysis, just call or E-mail Guy Vining of Vining Law Group, P.L.C to schedule a meeting.]

Top Ten Bankruptcy Mistakes: Borrowing from Friends

       TOP TEN BANKRUPTCY MISTAKES

   #2

 Borrowing From Friends

 

    If you are in serious financial difficulty it ordinarily results from credit card and other non-secured debt that you can not pay. In a consumer bankruptcy, whether Chapter 7 or Chapter 13, all of the unsecured debt can ordinarily be discharged or reduced and paid off over an extended time for a fraction of the debt

Borrowing from friends or family to keep from filing a bankruptcy will usually amount to throwing “good money after bad.” If you are unable to keep up with your credit card and other debt then how can you hope to repay the family member or your friend?

The Bankruptcy Code and Bankruptcy Rules set forth a complex set of requirements for the equitable treatment of all parties in a bankruptcy. Bankruptcy Rule 1007(a)(1) requires that you list all creditors in your bankruptcy case – even family and friends. All creditors must be treated equally with respect to distributions of property, if any.

Why burden a loved one with your financial situation and possibly lose a friend or create family tension? Moreover, if a loan might help then why not seek professional help to see if the loan can be secured to protect that lender?

Only analysis of your particular situation will be able to determine a prudent course of action. However, in most instances it is better not to put in jeopardy a friend or family member pre-petition. After your other debts are discharged it would be safer for them and more helpful to you to receive a loan.

[Guy Vining, a bankruptcy attorney, in metro-Detroit, maintains his office in Taylor, Michigan where he serves the downriver communities of Monroe, South Rockwood, Gibraltar, Brownstown Township, Grosse Ile, Woodhaven, Trenton, Southgate, Riverview, Allen Park, Lincoln Park, Dearborn, Dearborn Heights, Westland, Wayne, and Ecorse. If you or a family member of friend would like a no-obligation no cost consultation/financial analysis, just call or E-mail Guy Vining of Vining Law Group, P.L.C to schedule a meeting.]

Part 3. What to consider in hiring your bankruptcy lawyer

Guy Vining, a bankruptcy attorney, in metro-Detroit, maintains his office in Taylor, Michigan where he serves the local communities of Monroe, South Rockwood, Newport, Carelton, Berlin Township, Hamburg Township, Rockwood, Gibraltar, Brownstown Township, Grosse Ile, Woodhaven, Trenton, Southgate, Riverview, Allen Park, Lincoln Park, Dearborn, Dearborn Heights, Westland, Wyandotte, Wayne, and Ecorse. If you or a family memeber or friend would like a no obligation no cost consultation/financial analysis, just call Guy Vining of Vining Law Group, PLC to schedule a meeting.

In this part 3 of essentials in hiring your bankruptcy attorney or lawyer Guy Vining will futher explain why it is tremendously important to use care in hiring your bankruptcy attorney. As earlier indicated do not be ashamed to actually interview your prospective bankruptcy attorney. Afterall, its your financial life which is at stake and you deserve to have a bankruptcy lawyer who is both knowlegeable and also personable. In other words, legal bankruptcy counsel with whom you can trust to handle your matter in a competent manner and also who you like working with.

6.    At your initial meeting [ or before if you like ] you should be given a number of very important documents and discuss them at least in a general way. Keep in mind that a bankruptcy attorney’s time is precious, as is yours, and so many attorneys do not discuss at an initial meeting everything in great detail but deffer detailed anaylsis or discussion until they are actually retained [ hired ]. At the Vinig Law Group, PLC at every initial conference, however, the prospective client is given a number of important items to help them to assist in preparing their case and thinking through their finances. You should ask any bankruptcy attorney you interview to provide with at least the following items: 527 disclosures, checklist for required documents and detailed questionaire form.

7.    The 527 disclosure forms are actually required by the Bankruptcy Code. In the recent reformation of the Bankruptcy Code the US Congress determined that consumers MUST be give and sign to acknowlege receipt of these forms. These disclosures set forth many of your rights and also your obligations in filing for a bankruptcy. These are very detailed and can not be covered in the brief space of this posting but a few important areas follow. Among other things, the 527 disclosures cover the distinctions between common bankruptcy chapters. These chapters are outlined in a general way, the concept of a discharge in bankruptcy and what it means to you, options avalible other than bankruptcy, the need for absolute accuracy and honesty in the preparation of bankruptcy schedules, proper methods of valuation of property in your individual case and many, many other items are covered. At the Vining Law Group, PLC it is the practice to give out this material whether we are hired or not as it is important information for you to have. Generally, Guy Vining will discuss these items briefly and then if retained will answer any specific questions regarding the 527 disclosures at your second meeting with him. Make sure that you receive a copy of these important disclosures either before or at the time of your first appointment with your bankruptcy lawyer or bankruptcy attorney. They will be invaluable to you in understanding your rights and obligations.

8.    Your bankruptcy attorney should also give you a detailed checklist of what paper work is required from you to file a bankruptcy case. The practice at Vining Law Group, PLC is provide the same free of charge upon the asking or at the first meeting for a no cost consultation. You will find that most bankruptcy attorneys will have their own form of a checklist and will or should provide the same for you at no cost. These materials are essential and I repeat essential. If you file your bankruptcy case without having all the needed paper work your case might become a great deal more expensive as your attorney may need to get involved to obtain the same for you or repeated meetings of creditors may be required. In extreme cases your bankruptcy petition could even be dismissed because under the Bankruptcy Code you have an absolute duty to provide certain information and to cooperate with the trustee that is appointed to administer your estate. Under most circumstances it is the recomendation of the Vining Law Group, PLC that you do not file a bankruptcy petition until all your paper work is in order…why take a chance at something so important? Moreover, thes e documents may become extremely important in determing what your property consists of and what you can exempt [ keep ]. finally, certain documents may need to be anaylzed by your bankruptcy attorney so thet the property can be appropriately classiifed and scheduled on your bankruptcy schedules. Guy Vining will be pleased to discuss with you the documents which are required to successfully complete your bankruptcy.

9.    At your initial, no charge consultation at the Vining Law Group, PLC, its principal, Guy Vining, will also give you a detailed questionaire to complete. We call this your homework and indeed it is not easy for most folks. What’s the expression: no pain, no gain? This ” homework” must be completed as the bankruptcy process is meticulous and a good bankruptcy attorney will not file sloppy or incomplete schedules. Most bankruptcy attorneys will also provide with some document which is similar to help you help the bankruptcy lawyer help you. You see the bankruptcy petition is a series of schedules which identifies you as an individual, accounts for all of your assets, all of your liabilities, determines which items of property you wish to retain [ exempt ] and describes in great detail all of your recent income and financial affairs. Most bankruptcy attorneys have some questionaires avaliable to assist in the preparation of the schedules which need to be filed with the court. If you would like to obtain one to see what is entailed before an initial no cost meeting Guy Vining will be pleased to make the same avaliable to you. If you retain Vining Law Group, PLC, Guy Vining is most pleased to help with areas on the questionaire which you find to be difficult or complicated.

As earlier indicated when choosing your bankruptcy lawyer do not hestitate to ask a lot of questions concerning the bankruptcy attorney’s experience, philosophy of practice and about the tye of attorney client relationship that you can expect. Guy Vining has been a life long resident of the metro-Detroit so-called downriver area and has been of service to hundreds and hundreds of clients in multiple legal areas and has dedicated his professional practice to helping others. If you have any questions please feel free to emai or call Mr. Vining.

About the Vining Law Group, P.L.C.


Guy Vining is the principal of Vining Law Group, PLC, which is engaged in the general practice of law in the state of Michigan. The goal of this firm is to provide you with quality legal service at a reasonable price, including consulting, planning and litigation when required. As the owner, Guy Vining is able to give each matter entrusted to him the personal attention it deserves. Unlike larger firms that often assign your case to a junior associate, with whom you have never met, Mr. Vining is personally responsible for all aspects of your case. Mr. Vining will answer any of your questions at the initial office conference, and it is he who will perform all necessary legal research, prepare all pleadings, draft all documents, and make all court appearances on your behalf. As a personal service firm, Mr. Vining’s office will keep you informed of the progress of your case on a regular basis. You will receive copies of all correspondence generated in the course of Mr. Vining’s work on your legal matter. Telephone messages will be promptly returned.



Mr. Vining believes that the attorney-client relationship must be one of mutual trust, respect, realistic goal setting, good communication, and zealous representation within ethical confines. The goal is provide the highest quality service to you, your family and friends. This principle works as most of Mr. Vining’s work is received from other attorneys who respect his craft or from former satisfied clients.