How to file for bankruptcy correctly: Avoid Toni Braxton's alleged mistake of bankruptcy fraud

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From Madame Noire Business

The latest financial controversy for Toni Braxton are accusations of bankruptcy fraud, alleging that she gave her estranged husband more than $50,000 to avoid paying creditors. (She [was also trending yesterday] morning on Twitter for her Behind the Music episode. Did you see it? We have to check that out.)

This could actually happen to anyone if they don’t know the rules or they try to do a runaround the laws. If you are filing, check the bankruptcy laws in your state. But first, assess whether or not it is time for you to declare bankruptcy. According to bankruptcy lawyer Bruce Weiner of Brooklyn-based Rosenberg, Musso & Weiner, LLP , bankruptcy is an option when “the amount of credit card debt is approaching annual income; you have had a drop or loss of income and are thinking of tapping into IRA or 401(k) to pay credit cards; or you stop answering [the] phone because of collection calls.”

New York-based attorney Daniel Gershburg, agrees, adding that “one of the first signs that bankruptcy may be necessary is that you don’t have enough money to pay your credit card minimums. And once you begin to consistently transfer balances from one card to pay for the other, it’s time to file.”

Here’s how to file:

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