If You Have to File Bankruptcy, Make Sure That You Make It Count
Although so many people file for bankruptcy in the UAE, it is sad to know that some of them don't get any financial cushioning to help them get back on track. That is major because they fail to follow the required steps in filing for bankruptcy. If you want to file for bankruptcy successfully, here are some of the things you should do.
Some people have the tendency of filing for bankruptcy when, in actual fact, they are under no financial constraint. Usually, they do this so that they can avoid or delay paying pending bills. Many people don't understand that an audit is conducted when you file for bankruptcy, and the figures need to make sense. If you recently moved large amounts of money before filing for bankruptcy. you will have to prove the court where the money went to.
Avoid more debts
Since you are already preparing to file for bankruptcy, you will need to portray your condition's seriousness by avoiding any additional debt. That is because more obligations can mean more problems for you. If you access more debt a few days before filing for bankruptcy, the creditor can sue you with fraud claims. Many people who do this have no intention of paying back the loan they just received. Unless there is a genuine reason for borrowing then filing for bankruptcy within a short period, you can be subject to criminal proceedings.
Your retirement account is not involved.
When filing for bankruptcy, many people mistake of not using their retirement savings in rough times. They are not aware that you can always protect your retirement savings and use the funds to keep you going during hard times. That is why you should speak to a professional attorney before proceeding to file for bankruptcy.
Don't hide or transfer your assets.
Protecting some of your assets before filing for bankruptcy can make you fail to get the financial help you need. As part of the process, all your assets need to be evaluated and the worth made known to the trustee. That way, it can be determined if you need help or be granted the option to avoid paying debtors.
Avoid paying creditors selectively.
Once you have filed for bankruptcy, it is better to understand that your debts will be sorted by someone else and the responsibility is wholly removed from your hands. If you decide to pay up some of your debtors at the cost of others, the trustee has the right to sue you're the debtors you have paid to split the money equally amongst your creditors. Nevertheless, such an action can hurt your case and lead you to more financial problems.
Don't make unusual bank deposits.
There is no way you can claim to be bankrupt and still make large deposits to your bank account. For the sake of your bankruptcy case, you need to maintain the status of a needy person.
Before considering bankruptcy come and talk to bankruptcy experts If you are considering filing for bankruptcy in the UAE, we highly recommended that you speak to one of bankruptcy experts like HHS Lawyers in Dubai UAE. Experts are well-versed in UAE law and can help with all the aspects of this tricky topic.