David Gomez serves the Platinum Law Group and provides dedicated bankruptcy and estate law services to clients in Maryland. Forward focused, David Gomez and the Platinum Law Group have a strong knowledge of bankruptcy as a strategic way of dealing with persistent and insurmountable debt.
Filing bankruptcy offers a lifeline of easing immediate debt and allowing people to look ahead toward sustainable retirement planning once again. The arithmetic is simple: interest on debt principal that has grown to a point where it can never realistically be paid back takes away from money that could be saved and invested productively.
Before filing for bankruptcy, make sure not to engage in unusual or large repayments of debt, particularly to single creditors, friends, or family members. In certain cases, these can be considered “preferential transfers,” in which one creditor has received an unfair benefit over others, with the creditor sued in court and forced to transfer the money to others.
At the same time, don’t suddenly run up new debt once the decision has been made to file for bankruptcy. Consequences of this include the new creditor claiming fraud, as a bankruptcy filer can run up a balance, take out a new loan, or open a new line of credit, without planning to pay it back. This debt could potentially be considered nondischargeable and owed in full within bankruptcy proceedings.
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