Bankruptcy Planning: What not to do
As I take down my website, I thought I would post the following information I have had on my website for years. Still good advice.
Thirty-Three DONâTS in preparing to file a Chapter 7
1. Donât leave out Bank, Checking, Savings, Brokerage, Credit Union accounts.
2. Donât keep a bank account where you owe money such as a credit card debt.
3. Donât use your credit cards.
4. Donât take Credit Card Cash Advances.
5. Donât use convenience checks.
6. Donât do balance transfers.
7. Donât pay money to family.
8. Donât pay money to friends.
9. Donât tell a creditor that you intend to pay.
10. Donât leave assets off of your paperwork.
11. Donât file bankruptcy if you are about to receive a tax refund or inheritance. Discuss the timing with your attorney.
12. Donât fail to tell your attorney about your small business, sole proprietorship, partnership, LLC, or corporation.
13. Donât purchase a home shortly before filing bankruptcy without consulting your attorney.
14. Donât give or gift property to anyone.
15. Donât pay more than $600 on any past due bill.
16. Donât transfer property to anyone.
17. Donât cash out retirement plans or 401kâs.
18. Donât take out a second mortgage.
19. Donât gamble.
20. Donât hide assets or debts.
21. Donât take out âpayday loansâ.
22. Donât put your money in your kidsâ bank accounts.
23. Donât omit or âsaveâ a credit card for after your bankruptcy.
24. Donât fail to list debt to family or other âinsiders.â
25. Donât write bad checks.
26. Donât borrow money.
27. Donât forget to tell your attorney about liens you may have on your home or unpaid judgments so they can be avoided.
28. Donât make major financial decisions without talking to your attorney.
29. Donât get married before filing if your spouse has a high income.
30. Donât misrepresent facts to your attorney.
31. Donât run up your credit cards in advance of filing bankruptcy.
32. Donât fail to appear at State court hearings, trial or proceedings; coordinate with your attorney.
33. Donât hide from your attorney. Keep them up-to date with your address, phone number and email address.
(Based on materials provided by attorneys in the National Association of Consumer Bankruptcy Attorneys-NACBA)