Bankruptcy is a huge financial decision to make, and many people make it when they are desperate. Consequently, it is essential to know the dos and don’ts before bankruptcy. If you must file for bankruptcy, you want to set yourself up with a clear path for rebuilding your credit. Contact a lawyer to find out what options are best for you.
Don’ts Before Filing for Bankruptcy
You may have a knee-jerk reaction to make some desperate choices before filing for bankruptcy. Stop and think before you make any rash decisions.
1. DO NOT hide assets. If a judge were to find out you were hiding a car, expensive electronics, or property by passing them to a friend, your case would be thrown out.
2. DO NOT increase your spending. Running up your credit card right before filing for bankruptcy can easily be traced in your bankruptcy case.
3. DO NOT work overtime before bankruptcy. Your overage of hours could be considered in your case and disqualify you for Chapter 7 Bankruptcy. If over-working yourself can not be kept up long-term, don’t attempt it at all.
4. DO NOT let a non-lawyer file your bankruptcy. A bankruptcy preparer cannot give you legal advice or offer the best way to navigate your bankruptcy.
5. DO NOT borrow from a 401k. This will result in unnecessary tax expenses that you cannot get back during bankruptcy.
Dos Before Filing for Bankruptcy
1. DO hire an attorney. You need an expert to guide you through the bankruptcy process and let it be the tool toward better financial success in the future.
2. DO be completely honest with your attorney and on the petition. Fill out the bankruptcy petition honestly, including all assets and cash in your possession.
3. DO file taxes each year. Keep your taxes up-to-date so that your tax returns are ready when called upon by the bankruptcy court.
You may feel overwhelmed when it comes to filing for bankruptcy. Let an expert team explain these dos and don’ts so that you can make your bankruptcy process as smooth as possible.
For bankruptcy questions, contact Miles & Hatcher, LLP. You will be directed on the best steps to take to obtain financial freedom. Call to schedule a free consultation: (909) 481-4080.