Richard Parker is a used car salesperson who lives in Los Angeles and is swamped with debt. He sees an ad from a Los Angeles bankruptcy attorney to declare bankruptcy and learns that he can make all of his credit card bills, bank levy’s, wage garnishments, and medical bills disappear by filing bankruptcy. He decides he is going to file for bankruptcy so goes on a spending spree. Los Angeles bankruptcy lawyers would advise against this type of fraudulent behavior as it would significantly reduce your chance of receiving a discharge after filing for bankruptcy. Richard heard from his friend, who filed for bankruptcy without a bankruptcy attorney, about how easy it was to scam his creditors through bankruptcy. Richard did not know how to file bankruptcy but was confident that he could do the same. Richard maxes out all of his credit cards, purchasing Jewelry, big screen TV’s, clothing, and other nonessential items. Many of these items and cash advances are given to his family members as gifts. Some of it he planned to get back after receiving his discharge in order to hide the assets from his creditors.

Los Angeles bankruptcy attorneys are well aware of all of the bankruptcy laws in your area and will make sure you follow these rules so that you can discharge the maximum debt possible for your situation. Bankruptcy courts are on the lookout for behavior that may be fraudulent and look to the expenditures made in the last 90 days and significant gifts to others. Any debt over $500 to a single creditor of a luxury good is presumed fraudulent. The court may determine you took out loans with no intention of paying them back. This would be considered fraud and the bankruptcy court will either not discharge those purchases or not allow the bankruptcy at all. The court can find this out by looking at the purchases in your credit card statements. A quality Los Angeles bankruptcy attorney will identify any problems in your financial history and only recommend filing a chapter 7 bankruptcy if receiving a discharge is feasible.

Los Angeles bankruptcy lawyers recommend to most debtors that the best option is to not accumulate any more debt if you are thinking about filing for bankruptcy. However, the bankruptcy court will usually ignore payments for essential items, such as food, as long as it is not exorbitant. In addition, the accumulation of penalty fees, such as late payment fees, are not considered as adding more debt as you are not actively incurring more debt. Los Angeles bankruptcy lawyers would advise their clients that they are better off paying secured claims, like a mortgage, that can’t be discharged, rather than paying unsecured debt, such as credit card bills, that will be discharged later. Los Angeles bankruptcy attorneys help thousands file for bankruptcy and will walk you through this process and improve your chances of qualifying for a chapter 7 bankruptcy.

Most who are filing bankruptcy do not know how to file bankruptcy and without a Los Angeles bankruptcy lawyer you have to face the complex and intimidating prospect of filing for bankruptcy on your own. The bankruptcy court will expect you to be not just aware, but proficient in the mountains of rules and regulation of bankruptcy law, file copious amounts of paperwork and also take part in a creditors meeting. Los Angeles bankruptcy lawyers support their clients through the entire process and guide them through the web that is bankruptcy law. In addition, a good bankruptcy lawyer will prevent you from making the crucial mistakes that will prevent you from receiving your bankruptcy discharge. Los Angeles bankruptcy attorneys stay up to date on the latest changes in bankruptcy law to help service your needs. While some may be able to slip through the cracks and file for chapter 7 bankruptcy without bankruptcy lawyers, it is in your best interest to file for bankruptcy the right way with a Los Angeles bankruptcy attorney.

Richard is using large gifts to hide assets from his creditors. Bankruptcy attorneys in Los Angeles will tell you that one of the most common mistakes of those who file without a bankruptcy attorney is giving large gifts in an attempt to hide assets. The bankruptcy court looks to any significant transfers you made as it is a component of the bankruptcy petition. Gifts made by someone in significant debt may be considered a fraudulent transfer. The bankruptcy court will not only go after the debtor for this debt but also the recipients of the gifts. As a part of the bankruptcy process you will provide this information as a part of the bankruptcy petition. A Los Angeles bankruptcy attorney can assist you through this process and handle the mountain of paperwork that bankruptcy entails. Courts are especially concerned with fraudulent transfers that are meant to be returned after receiving a discharge. In some cases this may lead to jail time. Many of those filing for chapter 7 without a bankruptcy lawyer are not aware of the various exemptions available to them and many could have been able to keep more assets than they thought, had they used a bankruptcy attorney. A Los Angeles bankruptcy attorney will help you keep as many of your assets as possible without resorting to illegal tactics.

Richard did not know how to file for chapter 7 bankruptcy so he found a bankruptcy attorney in Beverly Hills. The bankruptcy lawyer asked him simple question about his financial situation, such as his gross wages, his assets, his expenses, and a list of his creditors. After the bankruptcy lawyer learned about Richard’s financial situation he refused to take him as a client because Richard would be unlikely to receive a discharge under chapter 7 due to his fraudulent spending. After being rejected by a credible Los Angeles bankruptcy lawyer, he decides that bankruptcy lawyers are just a waste of money and tries to file his chapter 7 bankruptcy on his own, unsurprisingly he is not granted a discharge. Richard’s chapter 7 bankruptcy petition is missing crucial information about his creditors and he forgoes necessary steps, such as attending the creditors meeting and taking the debt counseling course. Without completing these steps you can’t receive a full discharge and you will continue to owe these debts. Now he must pay his old debt in addition to the debt created in his spending spree. Los Angeles bankruptcy attorneys help their clients avoid making these mistakes by guiding them with their extensive knowledge and experience. Mistakes like leaving out creditors could compound your financial woes as a chapter 7 discharge may be granted on some debts but not on others, causing creditors not mentioned in your petition to cancel your accounts but not discharge your debt. For example, you could have your credit card account closed and be unable to use it but still owe the balance. This is because creditors usually will not keep debtors who declare bankruptcy even though there debt is not discharged. Bankruptcy Attorneys in Los Angeles are willing to work on your side to help you file for chapter 7 bankruptcy and have your debts discharged. Think twice about maxing out your credit cards before filing bankruptcy as you will only weaken your financial situation. Filing for bankruptcy without a bankruptcy lawyer may seem like a way to save money but it will only cost you more time and money through denied claims and other headaches. A Los Angeles bankruptcy lawyer will steer you away from these potholes and get you on track to debt freedom.
Los Angeles bankruptcy attorneys work with an array of different clients, with people in different fields and varying amounts of debt. You can be sure when working with a Los Angeles bankruptcy lawyer that your bankruptcy solution will be tailored to your circumstances. A bankruptcy attorney will do everything they can to keep you thoroughly informed during the process. Going through bankruptcy is a complex process that requires the experience and knowledge of a Los Angeles bankruptcy lawyer.