When you have to pay for a lawyer to fight your traffic tickets, that means you will have to borrow money for the process.
But you may be surprised to learn that your traffic ticket could also be your first time dealing with a bankruptcy lawyer.
“The process for filing for bankruptcy in bankruptcy can be daunting,” said Kathleen T. Johnson, a bankruptcy attorney with Lorna Geller LLP in New York.
“If you’re not familiar with the process, you can end up with a lot of red flags.”
First, bankruptcy lawyers must file a declaration of assets and liabilities.
You then file for bankruptcy on the court’s motion to dismiss.
You must make the declaration before your traffic citation is resolved.
“Once you file for the bankruptcy, you have the burden of proof,” Johnson said.
“So it’s a real drag to get that right.”
When you file your bankruptcy, the bankruptcy attorney will typically make a presentation to the court, explain the debtors responsibilities, and offer advice.
A bankruptcy attorney may also recommend a bankruptcy plan that includes a bankruptcy trustee or creditors.
The bankruptcy attorney should also provide you with copies of any court orders, or any other court documents that the bankruptcy trustee deems necessary.
“It’s a good idea to have copies of your court documents in case the bankruptcy goes ahead,” Johnson noted.
“Your bankruptcy lawyer may ask to see your court records, so you can compare them with any other documents that may be relevant.”
You may also be required to submit financial statements for your creditors, but they should be written in writing.
You will need to pay all of your creditors debts and other debts in full, according to bankruptcy attorneys.
You may have to file an amended bankruptcy, but that will not necessarily mean you will lose your license.
Johnson said that if you do not pay all your debts in bankruptcy, “you will probably end up paying less than what you would have gotten with your previous bankruptcy.”
But if you want to file for Chapter 7 bankruptcy, she recommends paying as much as $100,000 before filing bankruptcy.
If you have an auto loan that was not paid off before the bankruptcy filing, you will likely be in the black, said Tania Dvorak, a certified public accountant in Boston.
You could also have to make a payment to the creditors.
If your debt is still outstanding, you may have a lot to pay back, and you should be prepared to pay the creditors all or part of the remaining amount, she said.
You also will have the option to file a Chapter 13 bankruptcy if you meet the debt-collection requirements of Chapter 7.
“There are a lot more steps to follow before you file bankruptcy,” Johnson added.
“But if you have a good plan and a good understanding of bankruptcy law, you should have no problems filing for Chapter 13.”
If you do decide to file bankruptcy, it is recommended that you pay the debt owed before filing for it, Johnson said, but you can still avoid a potential bankruptcy in the event that you have no income from your business.
If the bankruptcy case goes to trial, you might have to go to trial with a jury.
Johnson recommended that bankruptcy lawyers work with their clients to make sure the judge will be able to rule in their favor.
“I can’t tell you how many people end up in bankruptcy due to poor planning or bad decisions by their bankruptcy attorneys,” Johnson explained.
“When you file, you must prepare your case for a trial.
The court has to give you a chance to prove your case, but not all bankruptcy cases are favorable.”
If your bankruptcy case does go to a trial, it can be difficult to prove that the judge is biased against you because of the way you have handled your case.
The process can be more difficult for people with mental health issues, who may have difficulty understanding the court system.
“You have to show that the court was influenced by the mental health issue,” Johnson told Next Big 2020.
“They are trying to make your life better by putting you in jail or getting you into court.”
“People with mental illness, or those who have issues with the law, often have to do things like go to jail or fight,” Johnson concluded.
You should also take the time to research your financial situation and how you can best handle your finances.
Johnson suggested you get a financial report from the bankruptcy court, which will be useful if you are facing a debt and can’t afford to pay it, said Johnson.
You can also ask your attorney to prepare a financial statement for you.
“We are all busy people,” Johnson advised.
“And it is good to get a look at your financials to determine if you need more help.”
But when you have your traffic violations resolved, you do have a choice to make.
“Some people are going to be able pay their debt, and some people won’t be able,” Johnson continued.
“My advice is to wait until the bankruptcy