San Bernardino Debtor Laws

While you have a right to file for San Bernardino bankruptcy protection, the courts have an obligation to ensure that each bankruptcy filing meets with the requirements under the law. This means that if you want to file a successful bankruptcy petition with the courts, you must be honest about your financial dealings and thorough in any and all disclosures. Debtor laws are in place to ensure that the protection afforded by bankruptcy is not abused by a few people looking to cheat the system. In most cases, if you are filing for San Bernardino bankruptcy, you need not worry about debtor laws as long as you provide all the information requested, as it is requested.

One of the biggest mistakes that individuals make when filing for San Bernardino bankruptcy is to attempt to conceal assets. While they may feel that they have a good reason to do so, the reality is that once the trustee discovers the deception, the best outcome possible is that the assets will be liquidated or added to the case file. At worst, the debtor could be charged with perjury in addition to having his or her case dismissed from the courts. If a San Bernardino bankruptcy case is dismissed, the filer loses all protections from the automatic stay, and wage garnishments, collection activities, and even foreclosure can continue as though the bankruptcy filing never happened.

Another mistake that is commonly made is selling off valuable items, stocks, or other assets before filing for San Bernardino bankruptcy. While the debtor may feel that selling off the items is preferable to having them sold during the bankruptcy hearing, if the trustee discovers that the items have been sold, they may be recovered forcibly, as the trustee has the right to undo any sales that cheat creditors out of their payments. Additionally, just as in the scenario with hidden assets, the case can be dismissed, and perjury charges may be filed. If you’ve sold any items in the months leading up to a San Bernardino bankruptcy, you definitely need to contact an experienced San Bernardino County Bankruptcy Attorney as soon as possible in order to discuss whether or not now is a good time to file.

Selling and transferring assets can cause problems even if you take steps to reverse the sales and transfers before the San Bernardino bankruptcy. This is because the trustee can argue that you acted in bad faith, and were attempting to cheat the system. In some cases, this has caused an individual’s bankruptcy case to be dismissed, even though the items in question were back in the individual’s possession as part of the estate.

Bankruptcy can provide much-needed peace and financial stability, but the laws governing San Bernardino bankruptcy must be upheld to protect everyone in the process. If you have concerns about any activities you may have engaged in with regards to your San Bernardino bankruptcy filing, contact us today. We offer a free initial San Bernardino Bankruptcy case evaluation, and our understanding of San Bernardino County Bankruptcy Courts can help you to ensure that your petition will go through the first time – giving you peace of mind right from the start.