Filing for bankruptcy can be confusing for those who aren’t familiar with the process. You may be wondering if there is anything you shouldn’t do before filing for bankruptcy. Certain things are normally innocent, but if done before bankruptcy, can cause problems. Below are things to avoid before filing for bankruptcy.
First and probably most important, don’t hide or withhold information from your bankruptcy attorney. Your attorney cannot do their job effectively if they do not have the whole picture. Your lawyer is not going to judge you, they are there to help. Your attorney is there to guide you through the bankruptcy process. Even if you feel embarrassed, tell your attorney everything so they can give you advice.
Do not borrow money or use your credit cards. Some people mistakenly believe that if their debts are going to be wiped out, they might as well make purchases with their credit cards. Debts taken out within 90 days of filing a bankruptcy might not be dischargeable. It is in your best interests to stop borrowing money or using credit cards after you decide to file for bankruptcy.
If you have borrowed money from a friend or a relative, you will want to avoid paying them back. If you do pay them back you put them at risk of legal action, because the bankruptcy trustee can reclaim that money you paid.
Do not sell, transfer, or give any property or asset away. If you are thinking about transferring or selling property while considering filing for bankruptcy, speak to a knowledgeable attorney first. This can have consequences in a bankruptcy, you cannot transfer property out of your name in order to avoid including it in a bankruptcy.
Also, do not buy a vehicle, home, or any other asset and put it into someone else’s name. Similarly, do not deposit money into anyone else’s accounts or give any money away. This can cause problems for both you and the other person.
Finally, do not ignore any lawsuits or notices. If you are served with a notice for a sheriff’s sale, foreclosure sale, or any lawsuit call a bankruptcy attorney immediately. They can help advise you of your options.
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These are things to avoid if you are considering filing for bankruptcy. But mistakes happen, if you have done any of these things speak to a bankruptcy attorney. They can guide you toward the best path forward. If you have questions about bankruptcy and would like to do a free consultation to go over your options, visit www.lifebacklaw.com to speak with an attorney. You will be glad you did!
