What not to do before and during your bankruptcy case
DON’T feel bad about considering bankruptcy as an option — sometimes life just happens. Often you are able to function better after the stress of debt is lifted from the household. Contact our bankruptcy attorneys to discuss your options.
DON’T continue to use your credit cards if planning to file for bankruptcy in the near future. Credit card purchases exceeding $500 within 90 days of filing may result in a non-dischargeable debt.
DON’T take out cash advances from credit cards. Cash advances exceeding $750 within 70 days of filing a bankruptcy case may result in a non-dischargeable debt.
DON’T pay off a creditor immediately before filing your bankruptcy, unless you have cleared it with your bankruptcy attorney in advance. This includes payments to friends and family. A payment over $600 to a relative or business associate within a year before filing your bankruptcy case can create a preference. A payment over $600 to an unsecured creditor within 90 days before filing your bankruptcy case can create a preference. Review the Chapter 7 and Chapter 13 Bankruptcy Timelines.
DON’T ignore requests for documents from the Trustee appointed to your bankruptcy case; he can have your discharge denied for lack of cooperation.
DON’T sell, transfer, or give away any of your property prior to or during your bankruptcy without first discussing it with your bankruptcy attorney.
DON’T continue paying your dischargeable, unsecured debts (such as credit cards) after you have decided you are filing bankruptcy, but before you file. You are just throwing money away. Learn to deal with the telephone calls… or refer the creditors to your bankruptcy lawyer.
DON’T forget to list any of your creditors, their collection agents or attorneys. People who are not listed will not receive notice from the bankruptcy court and will continue contacting you.
DON’T hide any information from your bankruptcy attorney or the Trustee appointed to your bankruptcy case. This especially applies to non-disclosure of debts to family members or friends or payments made to these “insiders” in the time prior to filing bankruptcy.
DON’T borrow or withdraw funds from retirement accounts such as 401k, IRAs, or other accounts to pay-off debt until you speak with a bankruptcy lawyer to determine if bankruptcy is necessary.
DON’T refinance your home, take out a home equity loan, or reverse mortgage until you speak with a bankruptcy attorney to determine if bankruptcy will still be necessary.
DON’T incur any debt in anticipation of filing for bankruptcy.
DON’T hesitate, contact us today for your free bankruptcy consultation.