Mistakes to avoid when filing for bankruptcy

Don’t make any preferential transfers such as paying money to family or friends;

Don’t use your credit cards;

Don't obtain Cash Advances;

Don’t purchase luxury items or any other item costing more then $200.00 within 90 days of filing.

Don’t leave assets off your Bankruptcy Petition and don’t fail to list debt to family or other “insiders;”

Don’t pay debts to unsecured creditors that you are trying to protect;

Don’t sell, transfer or give property to anyone without talking to us;

Don't assume you get to keep tax refunds that are owed to you;

Don’t file bankruptcy if you are about to receive an inheritance or large insurance settlement;

Don’t try to hide income, assets or debts;

Don’t convert exempt assets to non-exempt assets before filing such as cashing out retirement plans or 401k’s.

Don’t incur more debt in an attempt to avoid bankruptcy such as taking out a second mortgage unless you KNOW it will help you avoid bankruptcy;

Don’t take out “payday loans;”

Don’t forget to tell your Bankruptcy Attorney about liens on your home.  If you tell us about them it is likely they can be addressed in such a way that the lien is extinguished;

Don’t misrepresent any facts to us or the Bankruptcy Court.  It is easier to deal with the facts as they are than it is to deal with the fact you failed to disclose something;

Don’t file when you have checks outstanding in your checking account.   The Trustee in a Chapter 7 has the right to take any amount held in your bank account on the day of filing even if there are outstanding checks.  The Trustee will ask that you provide a bank statement for all your accounts listing the account balance as listed in the statement, not the balance in your check register. Taking the money out and paying your bills with money orders will ensure that the balance is low.