Things You Should NOT Do If You’re filling for Bankruptcy

Things You Should NOT Do If You’re filling for Bankruptcy

Perhaps you’re facing a challenging financial situation due to high medical bills, unemployment, or a recent divorce. Your debts are accumulating, and there’s no money to cover what you owe your creditors. Now you’re considering bankruptcy as your only remaining solution, well, it’s a good move, but you need to plan in advance to steer clear of common mistakes. To have a smoother bankruptcy filing process, it’s crucial that you avoid these ten things:

best Bankruptcy Attorney in knoxville TN

Transferring Property or Money

Transferring your assets to other people to keep them safe from the bankruptcy proceedings is unnecessary. In fact, this does more damage than good since the court can consider these attempts as fraudulent, even if you had not intended to conceal the assets. Owning assets don’t keep you from filing bankruptcy. Moreover, this doesn’t imply giving up all your assets.

 

Paying Off Certain Creditors

Any payments you make to certain creditors within the 90-day period before filing for bankruptcy is considered as a preferential transfer and may be problematic in your case.

Under Tennessee law, all creditors should be treated equally – no creditor should receive special preference over the others. In most cases, the bankruptcy trustee ends up suing the creditor to recover the amount you’ve paid them so that it can be distributed among your creditors equally. Unfortunately, this process may delay your bankruptcy filing as well as ultimate discharge.

 

Filing under the wrong chapter

Although not entirely distinct, both Chapter 7 and Chapter 13 bankruptcy forms give you the chance to get out of debt. Thus, you should discuss your financial situation in detail with your bankruptcy attorney to ensure you have all the information necessary to making this important decision.

 

Using Your Credit Cards

If you’re considering filing for bankruptcy, the very first thing you shouldn’t do is using your credit cards. You would never want ever to give the impression that you are “exhausting” your credit cards. All your creditors review your account activity once they receive the bankruptcy notification and may file a non-discharge ability complaint to have you repay the debt. However, you can still use a debit card that is linked to your bank account to make purchases.

 

Depositing Extra Money in Your Bank Account

No additional money should be deposited into your bank accounts apart from your sources of incomes such as your job. You shouldn’t deposit anything else or accept checks to deposit from people that are trying to assist you to come out of your debts. For your personal business, you shouldn’t run your business transactions via your personal accounts. Always consider keeping everything separately to avoid confusion and any suspicion of fraud.

 

Filing Lawsuits

Tennessee’s exemption laws may not protect your lawsuit settlement if you mix the funds with other money. If you deposit money from a lawsuit in an account with money from other sources, the bankruptcy trustee may conclude that these exemption laws no longer apply.

 

Accepting Future Payments

Once you file for bankruptcy, every other payment you are to receive in the future, as well as the funds that you already have, will be a part of your bankruptcy estate. In simpler terms, your bankruptcy trustee will use this money to repay your creditors. Depending upon when you receive the money, future payments may comprise of things such as tax refunds, or even an inheritance. These payments become the bankruptcy’s court property until when your creditors become satisfied.

 

Paying off unsecured debt using your retirement fund

The majority of individuals do this for fear of their retirement fund being seized during the Bankruptcy Knoxville TN proceedings. Usually, your retirement account will be exempted during your bankruptcy. Therefore, you’d rather keep your funds in your retirement account than using it to cover your unsecured debt.

 

Allowing your Insurance Coverage Lapse

It’s always a wise decision to file for bankruptcy after renewing your insurance policy, if only you need to retain your liability insurance valid to insure unknown liabilities. This simply means you’ll have insurance cover that extends for at least a year into the future. On the contrary, it might be hard to get an insurance company willing to issue a new policy or renew your business coverage. Your existing coverage cannot be canceled as a result of your bankruptcy so long as you still make on time payments.

 

Providing dishonest, incomplete or inaccurate information

Under Tennessee law, you are obliged to disclose all information regarding your financial history, income, assets, debts, expenses, and lawsuits against you. Bankruptcy protects you only from the debts listed on the paper. If you leave out an asset, you may end up losing it unnecessarily. If you are afraid of losing an asset after you file a bankruptcy proceeding, you should discuss the matter with your bankruptcy lawyer before it’s too late to make changes to your case.

If you’re planning to file for bankruptcy, and you cannot shun from some of the things mentioned above, you can take advantage of the ‘look-back’ periods by delaying your filing. This simply implies that the courts will only take into consideration certain transaction types within a specified period. Consult a knowledgeable and experienced bankruptcy attorney to guide you based on your unique situation and help you navigate bankruptcy Knoxville TN.

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How to prepare yourself for a divorce case

“Until death do us part” is not always possible especially when it comes to unhappiness and conflict in a marriage. Sometimes the healthiest path is by way of separation and divorce. If you and your partner decide that there is no way of working things out in your marriage and the word divorce gets passed around, there are several things to consider before you dissolve your union.

Divorce Lawyer

Hire a good divorce lawyer

 

The very first thing you should do when divorce is imminent is consult a divorce lawyer. A professional can give you advice on how to file for divorce as well as help understand what you are legally allowed to do. You want to make sure you are covered for any eventuality and know your rights and repercussions of any step you take, especially if there are children involved. If you do have dependent children, hire a lawyer with experience in family law, as the legal issues around custody can get tricky. A good divorce lawyer will help you navigate the unfamiliar waters you now find yourself in and will guarantee that no misstep is taken that will cost you something down the line. The type of divorce you decide to proceed with is also an important detail that a good divorce lawyer can help with.

 

Tell your family

 

The very next step is to tell your immediate family, especially your children. Your life is about to get a lot more complicated, so take care of the hardest part first so you can focus your energy on getting the job done. There should never be any animosity between partners when dealing with the children as you will need to show stability and strength during the break up. Your kids’ welfare should be the most important thing to consider during this difficult time. Understand the family law around custody in your area before making any decisions on living arrangements or routines so you don’t promise your children anything you can’t follow through on. You also don’t want to make any plans that could hurt you in court should the battle heat up and go to litigation.

 

Make copies of all financial documents

 

You will need to take copies of all of the shared household files including bank statements, benefit statements, life insurance policies, any property titles for a car or boat, all tax returns and RRSP information. Make copies of all of it including anything that you have electronically on a home computer or tablet. Your divorce lawyer will need all of this to get a better understanding of where you are financially.

 

Make a list of all assets

 

It is important to have a good understanding of what assets the household owns and how liquid they are should you need to sell them and split the proceeds. Assets include cars, home, cottage or boat, but also any jewelry, furniture, electronics, computers, and any other property that was purchased during the marriage. You should try to find receipts that detail when the items were bought and for how much, as well as the potential value now to get an overall picture of the amounts you are dealing with for settling the property.

 

Make a list of all debts

 

It is very important to make a list of debt incurred during the marriage and how much debt was brought into the marriage by either partner. Debts that you or your spouse might have held before your union is considered “non-marital debt” and is the responsibility of whomever it belonged to. It might be a good idea to speak to your partner about debt repayment before beginning formal proceedings, as it can take up a lot of time and end up costing more in legal fees. If talks beforehand are unlikely, then make as clear a list as possible of what debts you have, when they were incurred and who incurred them, and repayment schedules.

 

Know what money is coming into the household

Money from Divorce

Find out what your spouse’s income is, especially if they own their own business. Any income tax returns should give you an indication of previous year’s income. You may want to keep track of all money coming in and going out through your bank statements for a few months so you can get an overall view. It is very important to have a clear understanding of shared finances while you are still married especially if there is inequity between salaries.

Whether your divorce is a simple dissolution of a union between two childless people with little property or an established family with dependents and property, you must always consult with a divorce lawyer before making any decisions. Laws around divorce and family law differ from state to state and a good attorney can give you advice on the next steps to take and advice on how to gather all of the necessary information you need to protect yourself.

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Financial Recovery After Divorce

Financial Recovery After Divorce

 

Though the negative financial effects of a divorce can be a hard situation for any person to go through, the outcome can vary greatly depending on many situation such as Financial status, Job Status, and Custody Status. Prenups are also a major factor, as well as the court’s determination of whether one party has acted egregiously. When all is said and done, it is possible that both people will have to begin the process of financial recovery after a divorce – but in different ways.

 

Divorce Lawyer

 You may hear or read advice that uses the term “rebuilding” your finances after a divorce. This is wrongly used in many cases because there are situations where one or both parties can break even or come out ahead financially. “Recovery” is a much better word because the combination of plans made and community property will be divided, many times unequally. Therefore, recovery can be more of a challenge for one party than the other.

 

The first thing to do is to circle your financial wagons. Determine how much you will have to pay to the other person for monthly alimony and/or child support. Consider it as a monthly bill like your rent or utility bills. Since many families have depended on two wage earners to mete expenses, it is important to recognize there is only one after the divorce. If a prenup exists, remember that it will be just a piece of paper once the court has divvied up the assets and property of the marriage. Financially recovering from a divorce can be especially difficult if you are not employed for any reason and have to assume all the financial responsibilities as a result.

Money from Divorce

 

Once you have taken stock of all your financial assets, you need to protect the assets you have. This will likely mean you will hire an attorney and a financial advisor – one to protect your assets and the other to manage them. One of the best sources for finding a lawyer and financial advisor who can be trusted is the recommendation of a trusted friend or colleague. Going it alone is highly discouraged as you will be going through emotional turmoil in addition to adjusting to a whole new lifestyle.

 

Specifically, you will need to divorce yourself from your ex-spouse on all financial connections – credit cards, loans, joint property holdings that have not been settled through the divorce, etc. It is not the time to be nice because you are likely to be putting your own financial future at risk by staying connected. Legally you are not a couple, and that applies financially as well. Divorces are very often painful experiences, and maintaining financial connections only presents an opportunity for muddying up the waters now and in the future.

 

There are two basic categories you will find yourself in – financial survival or financial management. If you have a good job and are able to hit the ground running after the divorce, then it is a matter of protecting what you have – and what you expect have. Survival is more difficult, especially if you do not have a job and have to make child support or alimony payments. You will need to establish a foundation to get financially stable, which means having a place to live, money for food, and a way to look for and get to a job. You will not be able to move forward without a dependable source of income – or perhaps more than one source.

If you are in the position to focus on the management of your finances, then act like you are married. Avoid falling into the trap where because you are now single you can easily afford the child support or alimony payments, that you do not have to plan for the future. In fact, the truth is the opposite of the perception. If you have children you will want to be prepared to help them along the way, which includes sending them to college. If you plan to marry again, which many people do, then you will want a more secure financial future (with the requisite prenup at the appropriate time) – and the time to start is now.

 

If you are the one who is awarded primary custody of the children, recovering from a divorce is likely to be more of a challenge. The most common reason is that it is very difficult to plan your financial affairs because there are always unexpected expenses or emergencies that will come up that involve the children, forcing you to either scuttle or revise your financial plans. The best approach for such situations is to put away as much cash as possible in liquid assets, such as bank accounts, and only when your new lifestyle is established and there is a fixed monthly income-expense pattern will it be safe to move forward – slowly. A passive income source is a good way to shorten the time between divorce and having financial wiggle room.

 

The key to successfully recovering financially after a divorce is to make as few changes to your daily routine as possible. Do not quit your job, relocate, or become socially reclusive. There is a time for everything, but that time is not supposed to negatively affect you, especially in the financial arena. Many people find that professionals such as attorneys and financial advisors can keep you afloat during the worst times after a divorce. Consider them to be both resources and assets to create a new foundation for financial recovery.

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Top Three Reasons To Hire A Divorce Lawyer

Top Three Reasons To Hire A Divorce Lawyer

Divorce Lawyer

It is sensible to hire a divorce lawyer rather than representing yourself in any divorce case. The three important reasons for hiring a divorce lawyer include : lawyers have more knowledge about the matrimonial laws and family court proceedings, a lawyer can present a wide range of options to consider and he/she will be able to take care of paperwork efficiently.

 

 

If you right at the beginning of the divorce process then it is better to hire a divorce lawyer rather than considering representing yourself. The Divorce process can be extremely complicated and confusing which can be hard to understand by oneself. So having a divorce lawyer is a sensible solution as he or she will be able to breakdown all the benefits, features and things which will be beneficial or not so good for you in the long term. Here are three great reasons to hire a divorce lawyer right from the start while dealing with divorce.

Knowledge about matrimonial law and proceeding at family court

If you choose to represent yourself in family court then you will not get any special treatment or be seen the same as a lawyer. You may also have problems in your attempt to clarify your own stand due to lack of knowledge related to the matrimonial law and family court proceedings. Family lawyers are known to be experts at handing proceeding at family court and have a better understanding of matrimonial laws. Hiring a divorce lawyer will help you in being prepared for facing  questions and expressing your needs and requirements in a sound fashion.

A Divorce attorney can suggest options

A divorce attorney will be able to evaluate the situation and can offer some incredible options for you. Giving their experience they will be able to offer a wide range of options in order to settle your case in the most favorable and beneficial manner. Representing yourself will not showcase these options rather it will end up in increasing the delay for the right kind of judgment. Another dilemma faced by people representing themselves is whether or not to take the settlement proposal offer by the other side.

The Divorce process has a lot of paperwork

Going through the divorce process you will be overwhelmed by the wide amount of paperwork which has to be filled with the court. Hiring a divorce lawyer will help in dealing with wide range paperwork in the most efficient manner. It should be noted that producing complete paperwork is crucial in the divorce process as it can have a considerable amount of impact on the outcome of the case.

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Preventing Child Relocation in Knoxville

Preventing Child Relocation After Divorce

Families get torn apart on a daily basis. However that doesn’t mean the children should have to suffer because of it. After a divorce is finalized and the custody of the child or children has been given to one of the parents, oftentimes, said parents have thoughts about relocating. The parent usually wants to move to receive a brand new start away from the pain and chaos of their divorce. They feel like by moving, they can start all over again or they might be moving for a chance at a new romance, to be closer to other family members, or as a career choice.

Relocation after a divorce has become a very common issue. Children should not be torn away from their homes, families, and all they have ever known. It is not fair to the children or the parent that they might be taken away from. Hire a Knoxville family attorney to prevent your children from moving far away from you. There are many people constantly working to make sure that family law in Knoxville stays fair and keeps all family close to their children.

One of the first things that can be done to avoid relocation is to include a notice provision into the settlement agreement and the Divorce Decree. Finding the best child custody lawyer takes top priority, a good lawyer can help parents to come to a peaceful settlement and help write a Divorce Decree that both parties are happy with.

A notice provision states that if a parent is planning on moving out of state, they must notify the other partner in advance. This lets both parents have the time to attempt to work something out that is agreeable to both of them, but if an agreement cannot be reached, the other parent has enough time to object to a family court. Some parents may want to consider a final “no-relocation” clause in their Divorce Decree. This would prevent the guardian from moving the child a certain distance away from their current home without the other parent agreeing to it.

Knoxville Divorce Attorney are here to help you prevent your child from being relocated away from you. Family law in Knoxville is determined to keep your family close to you. Denna Middleton is the best child custody lawyer that anyone could ask for. It is the hope of  our family law Office in Knoxville that every child not be separated from either of their loving parents.

Pick the right person to handle your family custody case today! Contact Us Now

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Value of Prenup Agreements Knoxville TN

Divorce Attoreny Knoxville, Divorce Lawyer Knoxville TN

 

Value of Prenup Agreements

Prenuptial agreements, shortly known as prenup agreements are legal contracts entered into before the marriage takes place. These legal agreements usually include the following provisions:

  • Proposals for the asset distribution in the event of divorce or death.
  • Determining the distinctions between marital properties subject to distribution as well as separate properties which every party retains.
  • Protecting one spouse from the debts of the other spouse
  • Waiving or predetermining spousal support which includes the duration or amount of spousal support.
  • Protecting estate plans.
  • Protecting income against considered marital assets.
  • Protecting children from the previous marriage.
  • Protecting confidentiality

Prenuptial agreements can actually go so far in order to protect the rights of individuals in case marriage will no longer work out. Without such agreement, which particularly delineates how assets must be distributed, the titled spouse owning the assets before the marriage is the only one legally entitled to keep the ownership of properties that are separately owned in the event of divorce.

The Significance of Prenup Agreements

There are common misconceptions that prenup agreements benefit only the wealthy ones. However, law reports highlighted that the value of prenup agreements can be enjoyed by wider population. Individuals can benefit from these agreements in the following ways:

  • Couples are able to meet their needs independently.
  • When a party has particular assets to protect like business assets or inherited wealth.
  • Where one party anticipates obtaining wealth after the marriage
  • Overseas couples coming from the place where prenup agreements are commonplace.
  • Couples with children from past marriage or relationship. This ensures that properties are passed to these children.

Seek Legal Help from Knoxville Divorce Attorney

If you are in Knoxville and you are thinking about your marriage and your desire to avoid unnecessary stress in worst case scenarios, Knoxville divorce attorney can help you protect your own assets. If you need legal advice about prenup agreements and other divorce related issues, you can contact this knowledgeable attorney to help you gain clearer understanding and know your rights as well.

Knoxville divorce attorney specializes in prenuptial agreement which is said to be an excellent tool in establishing financial rights of every spouse during unfortunate event of divorce. Prenuptial agreements are also tools to secure personal assets, family business and welfare of children. You might be required to have a qualified attorney by your side so it would be best to call the best, Knoxville divorce attorney when the need arises. This Knoxville divorce attorney is expert in different areas covered by the Family Law such as divorce, prenuptial agreements and more.

If you want to ensure the protection of your children or you are planning to remarry, a highly experienced Knoxville divorce attorney can help you deal with all legal forms including prenuptial agreements. This attorney is highly efficient when it comes to handling all the legal documents related to the prenup agreement. If you have any doubt or there is something bothering your mind about this agreement, you can ask your Knoxville attorney and let him explain for you to gain clearer understanding.

 

Contact The Law Offices Of Denna Middleton Today!

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Ways to improve Credit Score After Bankruptcy

credit score

Having to declare bankruptcy is one of the most stressful and demanding decisions that a person has to deal with but unfortunately such a thing can happen, and the worst part about it is that it can hamper your credit score as well which is very bad to say the least.

Once you work with a bankruptcy attorney and get the issue sorted out, you do need to make sure that you find the proper way to improve your credit score as well. A good bankruptcy attorney Knoxville can help you in this regard, however here you can also find some pointers on how to do this on your own.

Start paying bills on time

After you are filing bankruptcy in Knoxville, you will need to start paying bills on time. This is one of the best methods that you can use in order to improve your credit score and it can bring in front some amazing results. Set reminders and always focus on the due date of your bills, then try to pay everything you can on time, it will help you a lot.

Review the credit report

Having a good idea of how your credit situation is will allow you to find better solutions for your problems. All you need is to make sure that you contact your bankruptcy attorney in order to come up with the solutions, but you can try to figure them out on your own as well.

Apply for new credits with caution

Seeing the hidden costs and applying for a credit with extra care is the right way to get more money, but remember that a secured credit card can help you quite a lot in such a situation.

Take a loan after 1-2 years

The issue when you are filing bankruptcy in Knoxville is that even after a longer period of time financial institutions will still offer you high interest rates, so the main idea is to try and shop around for the best possible rate that you can find. It will take a while to find that, but don’t rush as studying the market properly can help you save money.

Know your limits

Knowing the limit of your credit card and not exceeding them is a great way to improve your credit score after bankruptcy, so remember to always keep an eye on these. Pay bills on time and make sure that you use the cards sparingly, as that will help in the long run!

Don’t close accounts

Just like any bankruptcy attorney Knoxville will tell you, closing the bank or credit card accounts will only damage your credit score, so try to keep them active and pay all the fees. You will need to start recouping your credit score slowly, and this will do the trick quite nicely!

In conclusion, there are multiple methods you can use to improve your credit score after you are filing bankruptcy in Knoxville! All you have to do is to follow our instructions and it will be a lot easier for you to obtain the outcome you want. The experience will be well worth it, so keep that in mind and you will like the results for sure!

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