Taking on New Debts if Ready to File for Chapter 13

A debt can represent a large amount of stress in anyone’s life. Debts can cause the face and ongoing emotional toll especially as we are facing multiple payments or receiving ongoing calls from creditors. If you are struggling with the process of debt it could be wise for you to consider chapter 13 bankruptcy is an option in your future.

If you are considering bankruptcy already it might be wise to consider opening up new financial products or take on new debt. Accumulating a large amount of debt before you are going into bankruptcy may put you in a position where you are accused of fraud. A court of law may decide to throw out your case entirely which could leave you responsible for paying off your old debts as well as the new debts that you’ve just taken out.

Approaching bankruptcy may also leave you quite tempted to trade certain assets or sell them off in an effort to raise new capital. If you’re in a situation where you’re strategizing about asset protection you may want to consider if you are able to maintain a survivable income but don’t work at selling all of your transferable personal items in an effort to gain more capital.

Bankruptcy is an option that you can consider for eliminating debts during a difficult period of time but it is never something that you should consider as a strategy for debt profiting and fraud. If you’d like to learn more about how you can follow certain procedures to protect your assets during a bankruptcy without being accused of fraud, you should contact a qualified bankruptcy attorney today. We can answer any questions you may have about filing for Chapter 13 without being accused of fraud.

This post was written by Trey Wright, a bankruptcy lawyer in Tallahassee. Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, which specializes in areas related to bankruptcy law, estate planning, and business litigation. The information provided in this post does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only.  Information on this website may not constitute the most up-to-date legal or other information.  This website contains links to other third-party websites.  Such links are only for the convenience of the reader, user or browser; the ABA, the Global Anti-Corruption Committee and its members do not recommend or endorse the contents of the third-party sites.

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