PLEASE NOTE: To protect your safety in response to the threats of COVID-19, we are offering our clients the ability to meet with us in person, via telephone or through video conferencing. Please call our office to discuss options.

Has Debt Taken
Over Your Life?

Avoiding delays when filing for debt relief

When someone in Kentucky files for bankruptcy protection, they typically want the process over as quickly as possible. While necessary, the process of seekingdebt relief can be invasive and at times uncomfortable. Using the case study of a famous rapper, a recent article discusses some things a person can do to avoid delays during bankruptcy.

Soon after losing a $7 million judgment over a sex tape scandal in 2015, rapper 50 Cent filed for bankruptcy protection to remove that debt along with debt from other major business losses. When the woman who won the lawsuit discovered that the rapper had filed for bankruptcy, she alerted the court to some recent Instagram pictures of 50 Cent posing with mounds of cash. In March 2016, the court took issue with the photographs, which resulted in additional court inquiries as to the rapper’s financial position.

While 50 Cent was able to assuage the court in this case, others going through bankruptcy while posting pictures of themselves posing with flashy cars, new boats or recently purchased homes may not be so lucky. This could easily derail a bankruptcy case that was otherwise proceeding smoothly. It could also open the door for the dismissal of a bankruptcy case with prejudice, or even open up a bankruptcy fraud investigation in extreme cases.

Those who are considering filing for bankruptcy in Kentucky could benefit from speaking with an experienced bankruptcy attorney. Attorneys who focus their practice in this area of law will be in the best position to discuss a client’s unique financial situation and make suggestions on how best to proceed legally. Additionally, an experienced attorney will help his or her clients avoid some of the pitfalls that can greatly affect the length of debt relief proceedings.

Source: business2community.com, “How To Avoid Messing Up Your Bankruptcy”, Brette Sember, July 12, 2016

FindLaw Network