In Bankruptcy, Bankruptcy Law, Blog, Debt Relief
Bankruptcy Do’s and Don’tsAre you facing overwhelming debt? When filing a bankruptcy petition there are a few things you should keep in mind so that you can avoid common filing mistakes. By following these simple guidelines you can better ensure that your financial future will be protected and that you can enjoy life after bankruptcy. Here are the top bankruptcy do’s and don’ts that you should remember:

Don’ts

  1. Use your credit cards to pay off anything within 90 days of filing your bankruptcy petition. This is to avoid any possible delays in your bankruptcy case.
  2. Give money to friends or family members while you are filing for bankruptcy. This could drag them into your case and could even make them subject to a lawsuit.
  3. Borrow money from anyone.
  4. Exclude any assets that you have from your bankruptcy petition. Failing to list all your assets could cause you to lose them.
  5. Gamble or make bets with your money when filing for bankruptcy.
  6. Turn to bankruptcy if you are about to come into a large family inheritance or if you are planning to receive a significant tax refund.
  7. Avoid telling your attorney if you are a small business owner. If you fail to include your small business assets in your bankruptcy petition they could also be lost.
  8. Transfer any of your property to someone else and don’t give any of your belongings away. By transferring your property under someone else’s name, you could end up pulling them into your bankruptcy case and it could result in a lawsuit. This includes moving your money into an account under your child’s name.
  9. Put down more than $600 on overdue bills if you are in the middle of filing for bankruptcy.
  10. Hide any assets and be completely open with your attorney. The more we know the better we can help you.

Do’s

  1. Keep all important financial documents. These include all tax returns, pay stubs and letters from collectors.
  2. Continue making payments on all loans that you prefer to hold onto as collateral.
  3. Inform us if a collector has threatened to sue you or garnish your wages.
  4. Stop making payments on any debts that you are going to let go off. For example, if you don’t plan on keeping your house or your car, then have the automatic payments stopped as soon as possible.
  5. Keep the insurance on your house and vehicle current.
  6. Inform us if you are in the middle of any other legal dispute and are being represented by another attorney.
  7. Inform us if you are past due on child support or spousal support and how much you still owe.
  8. Inform us if you are losing any property in a current divorce case or a divorce that was filed within the last four years.

For more helpful bankruptcy information, contact our office for a free consultation now!