What Shouldn’t You Do Before Filing Bankruptcy?

Posted by Amanda Scharber on March 1, 2022 at 7:30 AM
Amanda Scharber

shutterstock_1980823049If you are planning on filing bankruptcy there are a few things you should try to avoid before your case is filed.

First, it is not advisable to incur any new debt. The reason behind this is if debt is incurred before you file bankruptcy, the creditor may try to dispute that the debt is dischargeable. In fact, if you incur $750 or more for luxury goods or services in consumer debt, to a single creditor, in the 90 days prior to your case being filed, that debt is presumed nondischargeable. A few examples of luxury goods or services are trips, non-essential household goods, spa services, etc.

Second, unless your attorney says otherwise, you should avoid selling or transferring items out of your name. The reason behind this is, if you transfer items out of your name before filing it will be scrutinized by the bankruptcy trustee for whether the transfer was done in bad faith. For example, did you transfer an item to your cousin so it wasn’t an asset of yours in your bankruptcy case or did your cousin pay fair market value for an item that they really wanted and you didn’t need? If you are wondering whether you should or can transfer something out of your name before filing bankruptcy, you should speak with your attorney.

Finally, in most situations you should not continue to pay on your unsecured debt. When you know you are going to move forward with bankruptcy, you do not have to keep paying on these debts, as they cannot be collected on after your case is filed. You should speak to your attorney about this to confirm this is the right step for you.


For more helpful information on things you should not do before you file a bankruptcy case, visit www.lifebacklaw.com to speak with an attorney today. You will be glad you did!


Topics: Filing Bankruptcy, How To File Bankruptcy

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