Things to Avoid When Considering Bankruptcy

   Not telling your attorney about all of your debt

You must list all of your debts, including any debts you intend to repay.     If you do not list a debt, it may not be discharged.    Also, failing to list a debt may jeopardize your right to obtain a discharge of your other obligations.

 Transferring Assets to Friends and Family Before Filing for Bankruptcy

Do not transfer any assets to any family members or friends before you file.   It will not help your situation and can only make your situation worse.  You are required to disclose any transfers of property made to anyone that were made before you filed bankruptcy.  If you transfer an asset to someone else, the trustee can just undo the transfer and it will be as if it never happened. It is possible the asset you are trying to hide is either exempt or something the trustee would not be interested in pursuing.   An experienced and qualified bankruptcy attorney will be able to tell you how to best protect all of your assets.  

  Failing to Cooperate with the Trustee

    The trustee has authority to request certain documents from you during your case including bank statements, tax returns, and information regarding your property.    Failure to provide requested documentation and assets to the trustee can result in your discharge being denied or revoked. .

 Paying Family Members and Friends a Large Sum of Money Before Filing Bankruptcy.

    Do not pay family members and/or friends before filing for bankruptcy.   The trustee has the authority to sue that person to obtain the money back to be evenly distributed among all of your creditors. 

 Waiting too long to file bankruptcy

    It is understandable that you want to put off filing for bankruptcy for as long as possible.    However, by filing for bankruptcy sooner rather than later, you can avoid much more unpleasant events such as harassing telephone calls, lawsuits, wage garnishment, foreclosure proceedings, and repossessions.  

 Not attending required meetings and court hearings

    If you do not attend the 341 Meeting of Creditors, your case will be dismissed.   If you cannot attend the meeting on the date scheduled, contact your attorney immediately so he can attempt to have it rescheduled.

 Using credit cards, obtain cash advances, or get new loans right before you file Bankruptcy

    If you use your credit cards  for cash advances   and purchases just before  you file for bankruptcy, that creditor can file a  lawsuit in the bankruptcy proceedings (called an adversary proceeding) asking that your debt to them be declared non-dischargeable. It is best not to use your credit cards at all if you are considering bankruptcy unless there is an extreme emergency  (Please note that needing a new TV or sofa set , etc.  is not an extreme emergency).

   FAQ About Bankruptcy

 Things to Avoid When Considering Bankruptcy