BANKRUPTCY TIPS

Things to AVOID When Filing for Bankruptcy:

  • Do not forget to tell your attorney about bank accounts, brokerage accounts, credit union accounts, PayPal accounts, Cryptocurrency, CashApp accounts, Venmo accounts, 401(k) plans or pension plans.
  • Do not use your credit card to purchase luxury goods or services prior to filing.
  • Do not use take out credit card cash advances.
  • Do not use convenience checks.
  • Do not make balance transfers on credit cards.
  • Do not pay money to family or friends in advance of filing or repay loans made to you by friends or family.
  • Do not leave assets off your paperwork.
  • Do not file if you are about to receive a large tax refund or inheritance. Discuss the timing of these events with your attorney.
  • Do not fail to tell your attorney about your small business, sole proprietorship, partnership, LLC, LLP, corporation, or any hobby from which you earn income.
  • Do not purchase a home shortly before filing for bankruptcy without consulting with an experienced bankruptcy attorney.
  • Do not give or gift any property to anyone prior to filing for bankruptcy.
  • Do not transfer or sell any property to anyone prior to filing bankruptcy.
  • Do not pay more than $600.00 on any past due bill prior to filing bankruptcy without consulting with an attorney.
  • Do not cash out retirement accounts, pension accounts, or 401(k) accounts without consulting with an attorney.
  • Do not take out a second mortgage prior to filing for bankruptcy.
  • Do not gamble.
  • Do not hide assets or debts from your attorney.
  • Do not post photos of assets on social media.
  • Do not take out payday loans.
  • Do not put money in a bank account that is owned by your child, family member or friend.
  • Do not omit or attempt to “save” a credit card for use after you file bankruptcy. The credit card companies will likely cut off access to this account after you file anyway.
  • Do not fail to list debts owed to family members, friends or other “insiders” such as business partners.
  • Do not make any major financial decisions without speaking to an experienced bankruptcy attorney.
  • Do not write bad checks.
  • Do not borrow money.
  • Do not get married if your potential spouse has a high income.
  • Do not misrepresent facts to your attorney.
  • Do not run up balances on your credit cards in advance of filing for bankruptcy protection.
  • Do not hide from your attorney. If your attorney is calling you, it is usually to ask you something pertinent to your case. Make sure to keep your attorney’s office advised and updated with your current address, current phone number and email address.
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