33 Don’ts for Preparing to File Bankruptcy – Part 2

Here is part 2 of a list of 33 don’ts for preparing to file bankruptcy compiled by Jonathan Becker after polling the listserv members of the National Association of Consumer Bankruptcy Attorneys.

1. Don’t fail to tell your attorney about your small business, sole proprietorship, partnership, LLC, LLP, LC, corporation, or hobby.
2. Don’t purchase a home shortly before filing bankruptcy without consulting your attorney.
3. Don’t give or gift property to anyone.
4. Don’t pay more than $600 on any past due bill.
5. Don’t transfer property to anyone.
6. Don’t cash out retirement plans or 401k’s.
7. Don’t take out a second mortgage.
8. Don’t gamble.
9. Don’t hide assets or debts.
10. Don’t take out “payday loans”.
11. Don’t put your money in your kids’ bank accounts.

See part 1 of 33 don’ts for preparing to file bankruptcy here. Stay tuned for part 3.

You should seek a local attorney in your state to help you prepare for filing bankruptcy. Your attorney will evaluate your situation and help you develop a game plan. Planning to file a bankruptcy is be tricky. You shouldn’t act without your attorney’s advice.

Tagged as: Discharge of Debt